Review process update

We have updated our process for this year’s review of the base milk price under the Dairy Industry Restructuring Act. In our final report on the review of Fonterra’s 2017/18 Milk Price Manual published 15 December 2017 we stated that asset beta was a key focus area for our 2017/18 Milk Price Calculation Review.

In order to assist our consideration of the asset beta adopted by Fonterra in its calculation of the milk price, we have commissioned an independent consultant to produce an independent report looking into asset betas of international dairy processors. We intend to publish this report shortly after Easter 2018 and to invite interested parties to submit on it.

After we have received submissions on the asset beta report we will confirm the process for completing our review. We expect to publish our draft review report on 15 August 2018.