Dairy Industry Restructuring Act 2001 review
A comprehensive review of the Dairy Industry Restructuring Act 2001 (DIRA) and its impact on the dairy industry was announced in December 2017. Find out about the review.
Public consultation has ended
In 2018 we ran public consultation and meetings on the issues and options for potential DIRA changes. We will release results from this process later in 2019. Go to the consultation page for more information.
- Find out more about what the DIRA review covered
- Government media release announcing consultation – 2 November 2018
The Dairy Industry Restructuring Act 2001 (DIRA) promotes the efficient operation of New Zealand dairy markets.
The DIRA is a significant driver of the dairy industry's performance. When the DIRA was introduced in 2001, it transformed the dairy industry through the creation of Fonterra. A lot has changed since then. In 2015/16 the Commerce Commission reviewed the state of competition in the dairy industry. This review builds on that analysis as we now take a more strategic focus and look at the effectiveness and impact of the DIRA across a range of areas. This will include incentives or disincentives it might create for the dairy industry to transition to:
- higher-value dairy production and dairy processing that global consumers seek for a premium
- more sustainable environmental practices on and off-farm.
Find out more
- Download the terms of reference for the DIRA review [PDF, 138 KB]
- Download the Cabinet paper on DIRA review terms of reference [PDF, 264 KB]
- Read the Government's media release announcing the DIRA review – 9 May 2018
|Key stages||Indicative timing|
Public release of the terms of reference
|Stage 1: Determining facts and building evidence|
||May to August 2018|
|Stage 2: Considering options for change|
|September to December 2018|
Final report to Government:
|Stage 3: Implementation of review's findings|
Legislative change process:
As at April 2019, we're at the second phase of Stage 2. We're analysing and summarising the overall findings from the review. We're developing policy recommendations for regulatory change, which will form the final report to Government.
In 2001, the DIRA allowed the creation of Fonterra through a merger between the 2 largest dairy cooperatives of the time and the New Zealand Dairy Board. The DIRA provides a framework to regulate the activities of Fonterra as a dominant dairy processor, including monitoring of its farm gate milk price setting processes. It also provides for the dairy export quota management system and regulates herd testing and the dairy core database.
In 2015/16, as a statutory requirement, the Commerce Commission did a review of the state of competition in the dairy industry. Further to recommendations in the report, the previous Government proposed changes related to competition in the sector. However, these were not considered by Parliament and were therefore not implemented.
On 19 December 2017, the Government announced a comprehensive review of the DIRA and its impact on the dairy industry.
In February 2018, the Dairy Industry Restructuring Amendment Bill (No 2) was introduced to prevent the DIRA's efficiency and contestability provisions from expiring in the South Island to allow time for a comprehensive review.
- Read the Government's media release 19 December 2017
- Find out more about the DIRA Amendment Bill (No 2)
If you have thoughts or comments on the review, or you would like to get DIRA updates, email firstname.lastname@example.org
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