ComCom argues Fonterra's support loans should be included in milk price calculation

Mon, 14 Dec 2015

By Fiona Rotherham Dec. 15 (BusinessDesk) - The Commerce Commission has signed off on the way Fonterra Cooperative Group calculates its milk payout this season but warned it will be keeping an eye on issues such as its cost of capital calculation and interest-free support payments to farmers. Under the Dairy Industry Restructuring Act, the commission has to report annually on whether Fonterra’s Milk Price Manual promotes setting a base milk price that incentivises the dairy cooperative to operate efficiently while providing for contestab...

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