Milk charge dispute date

A dispute between Fonterra and independent dairy company Open Country Cheese about the cost of transporting milk will be heard by the Commerce Commission at a conference in August.

Open Country, founded by former Deputy Prime Minister Wyatt Creech, made a complaint relating to the price Fonterra charges to deliver milk.

Creech said yesterday that the dispute was over a $300,000 difference and he was confident the commission would make a final determination in his company's favour.

The commission's draft determination on the issue, released in April, was in Open Country's favour.

"But we have not won the case until there is a final determination," Creech said.

Fonterra wanted to charge the cheesemaker transport costs of 24.16c/kg of milksolids for raw milk.

But Open Country complained that Fonterra's proposed charge was three times what Morrinsville's small Tatua Co-operative charged. The commission said the cost should be cut back to 14.76c/kg milksolids.

The commission says the conference will be held in Wellington on August 16 and continue on August 18 if required. Oral submissions will be heard.