Proposed changes to the Dairy Industry Restructuring Act 2001

Contact: Animal sector policy team


UPDATE – 13 MARCH 2018

Dairy Industry Restructuring Amendment Bill passed

On 15 February 2018, Parliament passed the Dairy Industry Restructuring Amendment Bill. This means the efficiency and contestability provisions of the Dairy Industry Restructuring Act 2001 (DIRA) will no longer expire in the South Island on 31 May 2018.  The Government will:

  • undertake a comprehensive review of the DIRA and its impact on the dairy industry
  • consult fully with the dairy sector.

Agriculture Minister Damien O'Connor has said that the review will consider key issues facing the dairy industry. These include, for example, environmental impact, land use, Fonterra's obligation to collect milk, and how to achieve the best outcomes for farmers, consumers, and the New Zealand economy.

The terms of reference for the review are being drafted. The Government intends to make the terms of reference public before 30 June 2018.

Find out more

Background information

The previous National-led Government had introduced a DIRA Bill that would have made a number of changes to the DIRA. That Bill has now been withdrawn and consultation on the planned changes has been discontinued. Any changes to the DIRA will be considered as part of the review process, and a consultation on the Labour Government's review will begin soon.

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