Farmers upset by government proposals over raw milk regulations are being urged to speak up.

On Tuesday the Government announced plans for competition watchdog the Commerce Commission to scrutinise how Fonterra arrives at the milk price and for a 200-million-litre annual increase in the amount of milk it must provide other processors. Submissions can be made until February 24.

Fonterra shareholder John Washer, of Oakura, described the plans as outrageous.

"When Fonterra was formed, most farmers understood the purpose of Dairy Industry Restructuring Act (DIRA) was to allow the start-up of new dairy companies to supply milk for local consumption. But most are exporting against us and their profits are going overseas."

It was unbelievable they would continue to have access to Fonterra's milk.

Washer will make submissions. "I would be disappointed if every Fonterra shareholder didn't do so," he said.

Te Kiri dairy farmer Ian Armstrong was floored by the proposals, which he said went well beyond DIRA's original purpose to ensure a milk supply for start-up companies.

Companies like Westland and Tatua in the Waikato were using Fonterra milk in products they were selling in overseas markets against Fonterra, and that was beyond the bounds of fairness.

Armstrong said he would make a submission and farmers who didn't would be remiss. "If you don't speak up, don't complain."

Read more: http://www.stuff.co.nz/taranaki-daily-news/business/6315432/Farmers-furious-over-milk-plan