Fonterra's "trading among farmers" plan is one step closer to its proposed November launch with the introduction of the Dairy Industry Restructuring Amendment Bill.
The Bill, tabled in Parliament on Tuesday, proposed legislative changes necessary for the launch of TAF.
Fonterra chairman Sir Henry van der Heyden welcomed its introduction, saying it would help pave the way for the introduction of TAF.
"It's nearly there, but there are some further refinements we will discuss with Government and other party members during the select committee process. We want to ensure the law changes allow TAF to operate effectively after its scheduled November launch."
The board and shareholders council still had to complete due diligence and ensure pre-conditions on which farmers voted could be met, including 100% farmer control and ownership.
The Bill also provided for the Commerce Commission to review and report on Fonterra's farm gate milk price setting.
"The co-op will always set the milk price. We have said right from the start that we don't think this proposed oversight is necessary, but we can live with it," Sir Henry said.
Federated Farmers looked forward to making a submission on the Bill. Dairy section chairman Willy Leferink said it was of significant importance to New Zealand's economic future.
"If the policy settings for milk pricing at the farm gate become arbitrary, then it'll not only shoot our largest export industry in the foot, it will directly affect the price consumers pay for their milk," he said.
During consultation, Federated Farmers made it clear changes relating to TAF were premature until farmer shareholders had a clear understanding of the value proposition involved.
