Issues paper for the 2026–27 review of the Dairy Industry Restructuring Act 2001

Background to this consultation

In May 2026, the Minister of Agriculture announced the beginning of the statutory review of the competition provisions that regulate Fonterra Co-operative Group Limited (Fonterra) under the Dairy Industry Restructuring Act 2001 (DIRA). The purpose of the review is for the Ministry for Primary Industries (MPI) to advise the Minister whether the competition provisions that regulate Fonterra should be retained, repealed, or amended.

Dairy Industry Restructuring Act statutory review begins – Beehive

The first step of this review was to get feedback on key questions in the terms of reference. We consulted on the terms of reference between 19 May and 29 June. We will release the submissions we received soon. The terms of reference remain unchanged.

Find out about the first consultation on the terms of reference

Have your say on the draft issues paper

We now want your feedback on an issues paper. Submissions on the terms of reference were used to help develop the issues paper and its technical annexes.

The feedback and evidence you provide on the issues paper will be used to develop a draft report. We will consult on this report before finalising and presenting it to the Minister of Agriculture. The minister must present the final report to Parliament by 1 June 2027. The minister may consider the report when deciding the next steps for the legislation.

The issues paper does not make recommendations or present final conclusions. It identifies the key issues MPI is considering, summarises the information currently available, and asks for evidence and feedback to support further analysis.

We welcome your feedback about the issues paper. This consultation opened on 28 September and we are accepting submissions until 5pm on 23 November 2026.

Consultation documents

Issues paper [PDF, 531 KB]

Supporting documents

• Technical annex 1: MPI's approach to the review [PDF, 1.3 MB]
• Technical annex 2: Should the current DIRA provisions be retained or repealed? [PDF, 1.7 MB]
• Technical annex 3: Should the current DIRA provisions be amended? [PDF, 607 KB]
• Appendix 1, 2, and 3 [PDF, 1.8 MB]

About the DIRA issues paper and supporting documents

The issues paper outlines the key issues for MPI's review. It identifies the main points for MPI's analysis. It is intended for readers who want to engage with the review and understand, at a summary level, our assessment of the key issues, the main areas of debate, and the evidence MPI is seeking. 

The technical annexes provide details about the evidence, information gaps, and provisional analysis. In these annexes, we have included questions that we'd like you to answer. After you've read the issues paper you should be able to identify whether you wish to get more information from the technical annexes and which of them are most relevant to you. 

• Technical Annex 1: MPI's approach to the review covers MPI's approach, outlines MPI's assessment framework, key efficiency concepts, market definitions, and relevant industry context.
• Technical Annex 2: Should the current DIRA provisions be retained or repealed? Examines likely competition and market-efficiency outcomes with and without the DIRA provisions in the domestic farm gate and factory gate raw milk markets.
• Technical Annex 3: Should the current DIRA provisions be amended? Assesses the design and performance of the current DIRA provisions.

As well as the technical annexes, MPI has included 3 appendices to support submitters with the review.

• Appendix 1: History and scope of the DIRA provisions describes relevant historical context to the DIRA and the statutory review. The information it provides is supplementary to the report and it does not contain any questions for consultation.
• Appendix 2: Summary of key issues, initial stakeholder positions, and the type of information and evidence sought.
• Appendix 3: Consolidated consultation questions provides a list of all of the questions for consultation which are posed in the technical appendices.

Related information

Dairy Industry Restructuring Act 2001 – NZ Legislation

DIRA Terms of Reference [PDF, 109 KB]

Consultation on key questions contained in terms of reference

Review of the Dairy Industry Restructuring Act 2001 held in 2018–19

Making your submission

Send your submission as a Microsoft Word or PDF attachment by 5pm on 23 November 2026 to dira@mpi.govt.nz

Your submission may respond to some or all of the issues and questions in the paper. Where possible, include evidence, analysis, facts, figures, or relevant examples to support your views.

Submissions are public information

Any submission you make becomes public information. Anyone can ask for copies of all submissions under the Official Information Act 1982. The Official Information Act says we must make the information available unless there is a good reason for withholding it. You can find those grounds in sections 6 and 9 of the Official Information Act. 

If your submission contains information that you consider should be withheld from public release, please:

• clearly identify the specific information concerned,
• explain why you believe there are grounds to withhold it under the OIA, and
• where practicable, provide that information in a separate appendix marked "Confidential" or “Commercial in Confidence” as applicable.

You may wish to contact MPI before lodging your submission if you would like to discuss how sensitive information should be presented.

MPI will consider any request to withhold information when responding to an OIA request. Any decision to withhold or release information may be reviewed by the Ombudsman, who can recommend or require release in accordance with the Act.

Official Information Act 1982 – NZ Legislation

Our privacy commitment

The Privacy Act 2020 applies to all submissions. Any personal information you provide will be used only for the purpose of informing this consultation. All submissions will be read by MPI staff. MPI may also use artificial intelligence (AI) to summarise content and identify key themes. All AI outputs will be subject to human review.

To find out about the personal information we collect, our approach to privacy and security, and your rights, refer to:

Privacy and security

What to include

Make sure you tell us in your submission: 

• the title of the consultation document
• your name and role
• your organisation's name (if you are submitting on behalf of an organisation, and whether your submission represents the whole organisation or a section of it)
• your contact details (such as phone number, address, or email). 

Background information about DIRA and the review

The competition provisions of the DIRA were designed to manage risks arising from Fonterra's dominant position in New Zealand dairy markets. It includes provisions that regulate activity at the farm gate market where farmers sell raw milk, and the factory gate market, where some processors and manufacturers trade raw milk among themselves.

The dairy sector has changed significantly since the original DIRA provisions were enacted in 2001. Fonterra's share of national milk collection has reduced, other dairy processors have entered and expanded, parts of the regulatory framework have been relaxed, and general competition law has changed. MPI is seeking feedback and evidence to help it determine whether the DIRA provisions continue to support efficient domestic market outcomes in this context.

The review is focused on the balance between scale and competition. Scale and operational efficiency can support New Zealand dairy exports to compete effectively in global markets. At the same time, effective domestic competitive pressure can support investment, innovation, farmer choice, and efficient domestic market outcomes.

The issues paper seeks feedback on matters including domestic market concentration, farmer switching, Fonterra's milk price leadership position, the base milk price regime, regulated raw milk supply, and whether the competition provisions that regulate Fonterra remain effective, efficient, and proportionate.