Cabinet has signed off on Primary Industries Minister Damien O'Connor's proposals to change the 18-year-old Dairy Industry Restructuring Act.
Farmers are pleased Fonterra will now get some choice who it picks milk up from, but disappointed open entry provisions stay the same.
Federated Farmers dairy chair Chris Lewis says the regulations must be fit for purpose.
He says they have a lot of challenges they are facing and need a government that is prepared to work with them to achieve great outcomes.
