The act has achieved its purpose Otago farmers told Agriculture Minister Damien O’Connor who told them at the launch on Duncan and Anne-Marie Well’s Taieri farm the 2001 law had enabled the dairy industry to grow in volume, to innovate and for new companies to establish.
It is time for a review but that process has also been triggered by Fonterra’s share of South Island milk falling below 80%.
Duncan Wells said DIRA gave the industry time to adjust to Fonterra’s formation but its usefulness has passed.
He wants Fonterra to be strong and he wants the dairy industry to be united behind a large co-operative.
“Our industry was built on co-operatives because our markets are overseas and that is where our competitors are.”
Taieri farmer Ad Bekkers said the review is vital to the dairy sector and long overdue.
It will allow the industry’s focus to return to competing for market share overseas and not for internal milk supply.
O’Connor said he hopes to have the review completed and legislation before Parliament by the end of next year.
Questions were asked whether the select committee members considering the submissions has enough dairy industry knowledge. O’Connor said they do.
“The industry should not fear in any way that ignorance will have any part in this process.”
Farmers needed to be active beyond the farm gate, ensuring they are involved in the DIRA review and also carefully considering the merits of candidates seeking election to the Fonterra board.
O’Connor said he has not shied away from criticising Fonterra but that does not diminish his desire for it to be the biggest and best company owned by farmers.
But such is its size and being domiciled in Auckland it is maybe one more step removed from shareholders, which makes director accountability more difficult.
Philip Wilson said the Fonterra Shareholders’ Council role in holding the board to account is underrated and while the co-operative has made mistakes it has a new chairman and chief executive.
