Federated Farmers is backing new rules that make it clearer when Fonterra can refuse milk from sub-standard farmers.
Changes to the laws governing the dairy industry specify that Fonterra can refuse supply when a farmer is well below industry requirements relating to the environment, animal welfare and greenhouse gas emissions.
The changes also mean Fonterra will no longer be obliged to buy milk from newly-established dairy farms.
Chris Lewis is Federated Farmers' dairy industry group chairperson.
