There is no monopoly in New Zealand’s dairy industry and Asia Pacific free trade pact negotiators meeting this month should be told so – yet again, says Federated Farmers president and trade spokesman Don Nicolson.

US dairy farmers should quit grizzling about Fonterra being a monopoly, Nicolson says.

“This is a standard line of many countries but it’s always been defended. Fact is Fonterra’s dominant position has not stopped – and is not stopping – other companies setting up in New Zealand to process milk.”

Negotiators from the US, New Zealand, Australia, Peru, Vietnam, Chile, Singapore and Brunei will meet next Monday in Melbourne for the first round of talks on the proposed Trans-Pacific Partnership (TPP) pact.

But US dairy interests are worried expanding US/New Zealand dairy trade will harm US dairy producers. US sugar and textile producers have similar worries about their overseas competitors.

The National Milk Producers Federation told a US International Trade Commission hearing that Fonterra controls 90% of milk produced in NZ, “meaning we are essentially pitted against a monopoly power”.

New Zealand’s ambassador to the US, Roy Ferguson, told the hearing hard work had got our dairy producers the success they now enjoyed, and he said because New Zealand’s capacity to expand milk production is limited the industry poses little threat to US producers.

Online bulletin Dairy Today commented on the US stance, “What’s really at stake here is the direction of US dairy policy.

“Are we going to be globally and export focused, or are we going to continue our tepid approach of focusing on our domestic market and taking only what the export markets might grudgingly give us?”