Kotahi Logistics, a freight management company launched last year by Fonterra and Silver Fern Farms, will not require authorisation from the Commerce Commission.
Fonterra lodged an application for authorisation, as it was concerned the joint venture's activities might breach the Commerce Act.
Kotahi would manage Fonterra's exports by containerised ocean freight. Authorisation was sought to allow Silver Fern Farms and other exporters and importers to also contract with Kotahi for ocean freight services.
In its final determination released this month, Commerce Commission chairman Dr Mark Berry said it had examined the areas of concern raised by the dairy co-operative and had reached the decision none of the arrangements proposed would lessen competition or breach the Act.
There must be a lessening of competition through the proposed arrangements of the joint venture for the commission to consider whether authorisation should be granted.
The aim of the Kotahi joint venture is to lift the performance of the country's supply chain.
The commission's decision meant the joint venture could go ahead but would do so without the protection from potential legal action under the Act that an authorisation provided, Dr Berry said. However, any party wanting to take such action would need to prove the arrangement would be likely to harm competition.
The commission could decide to reopen matters should the facts of the situation change materially at any time, Dr Berry said.
