Open Country Dairy is seeking a judicial review of the way Fonterra Cooperative Group set its milk price in the 2018 season, despite the Commerce Commission giving the price-setting process a pass mark.
The commission noted the judicial review on its website, saying Open Country Dairy brought proceedings against certain conclusions in its 2018 report.
In that report, the regulator was satisfied that Fonterra's calculation was largely in line with the efficiency and contestability elements required by law governing the dairy sector. However, it was also of the view that Fonterra's asset beta - used in calculating the cost of capital for a milk processor - was too low, meaning the dairy giant ended up paying its farmers a higher price for their milk than warranted under the law.
Open Country's submissions on the report were that the beta was too low and that Fonterra's sales outside the Global Dairy Trade platform were too opaque.
The country's second-biggest milk processor also told the commission that independent processors were limited to investing in areas where they can earn a viable return, and that Fonterra's dominance meant that there wasn't a contestable market.