Fonterra chief angry at EU butter regulations

NEW ZEALAND – Fonterra chairman Henry van der Heyden has expressed his disappointment at the new European Union regulation regarding the entry of New Zealand butter to the EU.

The new ruling splits the old yearly quota of 76,667 tonnes into two six-monthly periods, which van der Hayden said represented an unnecessary and unjustified interference with New Zealand’s butter trade.

The new system is thought to be a way of ensuring that New Zealand doesn’t flood the market with its full quota early in the year, when prices tend to be higher.

“Fonterra cannot see how the EU Commission can reasonably claim that the small proportion of New Zealand butter entering under the quota can cause problems in the very large EU butter market,” said van der Hayden.

He also expressed concern that the new regulation does not meet the EU’s World Trade Organisation commitments, which specify a one-year period for New Zealand to supply butter under the quota.