6. SUMMARY
GDC has all of the information required to calculate the fair value exit and entry price for its shares. If there are no barriers to entering GDC or to exit from GDC then GDC will also have the incentives to calculate the fair value price and to implement it.
The milk price and capital value posted by GDC will provide the basis for the calculation of a wholesale price that will be the appropriate starting point for the negotiation of contracts between GDC and other firms in the dairy industry.
Paper Prepared by Lewis Evans and Neil Quigley
16 March 2001
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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