The Dairy Industry Restructuring Act (DIRA), has been successful, but after 17 years it needs to be modernised says John Monaghan.
DIRA was enacted in 2001 to preserve competition in the New Zealand dairy market, in exchange for allowing the country's two largest dairy co-operatives to merge and form Fonterra.
Fonterra's chairman told The Country's Jamie Mackay, that there have been positives to the legislation, but it's time for change.
"Most farmers have choice in who they supply ... the New Zealand public have choice at the supermarket shelves. So it's done the job it was set up to do, but now we need to move on"
Although Monaghan agrees with some aspects of DIRA, he said Fonterra takes issue with supplying product that ends up competing with the co-op in the global market.