Fonterra loses exclusive Japanese deal

Japan is the latest market to which Fonterra has lost exclusive access.

From April 1, Japan has been able to source prepared edible fats and cheese from any New Zealand dairy processor, part of the terms of the Dairy Industry Restructuring Act under which Fonterra was formed in 2001.

The phasing out of Fonterra's exclusive supply arrangements to quota markets has been gradually occurring since 2008, and information supplied by the Ministry of Agriculture and Forestry said access to those markets was reallocated to exporters based on the share of milk collected from farmers.

From 2008, Fonterra has lost its exclusive supply arrangements for milk powder to the Dominican Republic, cheese to the United States and butter to Canada.

From 2011, cheese and butter quota exports to the European Union will be reallocated to exporters based on their share of milk collection and, from later this year, the United States market for low fat and cheddar cheese, where New Zealand has access to designated importers, will also be opened.

A Fonterra spokesman said the company had always been aware it would lose these designated markets and was prepared.

However, with Fonterra handling more than 90% of milk collected, it was likely to continue to dominate the supply of quota markets.

• The Southland District Council has approved the construction of additional rail facilities for Fonterra to service its Edendale processing plant.

The consent is for a new rail siding and new rail crossing over State Highway 1 about 650m north of the newly constructed dry goods store, and for those facilities to be used 24 hours, seven days a week.

The facilities were part of a proposal to make greater use of rail to move export products.

This included the development of a warehouse and storage hub at North Taieri for use before goods were railed to Port Otago.

The consent was granted subject to 14 conditions.

It was still subject to appeal to the Environment Court by both parties.


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