Dairy farmers are welcoming the government’s official review of the Raw Milk Regulations which dictate how much raw milk Fonterra must supply to independent processors.

Fonterra has forced the review after complaining that it has to supply raw milk to independent processors some of whom are foreign owned.

Ohinewai dairy farmer, Neil Bateup, says its time the government steps in to ensure foreign owned companies aren’t profiteering off the hard work of Kiwi farmers.

"I don’t believe that Fonterra should have to supply overseas-owned companies.

"There’s a whole lot of talk about the milk price, and I believe those independent companies are trying to milk that, so they can get cheap milk and obviously make more profit that they can send overseas.

"So I don’t believe its in New Zealand’s interests at all."

However, Mr Bateup says he feels the review should still recommend that Fonterra supplies milk to some companies.

"I’d like to see that Fonterra should still supply obviously Goodman Fielder for local market milk, none of the independents supply local milk incidentally, and supply other small start up companies to get them going.

"I think but once a company is established and has its own milk supply I don’t believe that Fonterra should have to provide them with milk going forward." 

In other dairy news Foneterra says that, in September, it will finally reveal how it sets the milk price in New Zealand, .

Currently, only the company itself, and select government ministers, know how Fonterra calculates the price Kiwis must pay for milk.

Until now the dairy giant has kept its price-setting formula secret.