Following the latest industrial audit reports that state the poor handling waste matter and effluent, Fonterra is intimidating the farmers that their permits might be at risk.

The audit report has also raised concerns in the Agricultural Ministry as it brings into light the fact that the fulfillment is falling and the national compliance has declined to 60% while the violations that can cause environment serious damages are elevating across the country.

Denying the allegations and putting forth the more complex image, the Federated Farmers said that like everybody else it was also equally concerned about the improvement of dairy sector's environmental presentation.

Lachlan Mackenzie, Dairy spokesman highlighted the range of variation from 39% compliance in Northland to 905 in Taranaki. Stating the reason for best in Taranaki, he said that has an the implementation of planting along the streams along with fencing and inspection of every dairy farm and every effluent system annually makes the former the best.

Mackenzie further added that the problem rises from the fact that different councils have different explanation of the regulations on effluent.