New Zealand Labour Party

Commerce Commission must investigate supermarket scrap

The fight between Fonterra and Lewis Road Creamery for supermarket shelf space should be investigated by the Commerce Commission, saysD Labour’s Primary Industry Spokesperson Damien O'Connor. 

‘At a time when the dairy industry should be focusing on value added production and premium branding, squeezing a small innovative company out of the market is just bad news for New Zealand.

‘Lewis Road has accused Fonterra of attempting to gain more than 95 per cent of the fridge shelves in North Island supermarkets. 

“The Dairy Industry Restructuring Act (DIRA) that formed Fonterra was designed to promote growth and innovation across the dairy industry while forming Fonterra, a dominant player. This legislation is up for review and Fonterra's behaviour in the domestic market indicates the ongoing need for protection from their power for small players. 

“I would hope Fonterra has a primary focus offshore where most of its products are sold, not bullying smaller innovative companies with the aid of the duopoly supermarket structure,” says Damien O’Connor.