Ministry for Primary Industries of New Zealand

11/24/2022 | Press release | Distributed by Public on 11/24/2022 01:32

DIRA Amendment Bill passes third reading

The Government has passed an Amendment Bill today to support Fonterra's move to a new capital structure and the continued success of New Zealand's dairy industry.

The Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Bill will allow the Fonterra co-operative to make changes to its capital structure, as well as introducing wider measures to reduce long-term risk and increase transparency within the sector.

"The Fonterra co-operative plays a major role in New Zealand's dairy industry and has helped ensure that our dairy farmers are world-leaders" Agriculture Minister Damien O'Connor said.

"The dairy sector is major export earner and contributes heavily to the wellbeing of our rural communities and the economic security of all New Zealanders. Fonterra has been central to this continued growth.

"This Bill strikes a balance of supporting Fonterra's shareholder mandate while also ensuring long-term sustainability, fair pricing in the market for farmers' milk, and value creation in our dairy sector.

"This will set the right foundations for the overall long-term success of our dairy sector, the prosperity of our rural communities, and help strengthen New Zealand's economic security at a time of global uncertainty.

"The past two decades have seen new entrants bring valuable innovation and healthy competition to the sector. These have led to the creation of new high-value products, initiatives to boost sustainability, and the creation of jobs throughout New Zealand, and we want to see this important work continue.

"I'd like to acknowledge all of the input and feedback from the dairy sector throughout this legislative change process, and especially those who engaged with the Primary Production Select Committee during their scrutiny of the Bill.

"This Bill will play an important role in the success of our world-leading dairy sector, the ongoing resilience of rural New Zealand, and New Zealander's economic prosperity" Damien O'Connor said.