The Dairy Industry Restructuring Amendment Bill (DIRA) amended legislation passed approximately 20 years ago to facilitate the creation of Fonterra Co-operative Group Limited (NZX:FCG).
Furthermore, DIRA encompassed measures to foster the efficient operation of dairy markets in the Kiwi nation and budge milk up the value chain.
The Bill highlights include:
- Withdraws Fonterra’s requirement to accept applications to become shareholders and offers guidance for assessing applications
- Provides for a continuous review of the DIRA after every 4 – 6 years
- Restricts Fonterra’s discretion concerning establishing a fundamental assumption in calculating the base milk price
- Entails appointment of one member of Fonterra’s Milk Price Panel on the nomination of the Minister of Agriculture