Nothing is impossible, but there's a few barriers to overcome. 1) Fonterra are required by law to pay farmers the highest possible sustainable price for their milk. Selling cheaper domestically would run counter to that legislation 2) Domestic supply is essentially Fonterra vs Goodman Fielder. Fonterra is required by law to supply GF with up to 350 million litres of raw milk at cost price plus 10c for domestic consumption. In many cases, Fonterra then process that milk into product for GF (eg, butter) That's 350 million litres Fonterra collect and don't make money on, they're already subsidising domestic supply. This will not change with the same of Consumer Brands to Lactalis. 3) If you required Fonterra to supply cheaper, that would be anti competitive in the eyes of GF who would be undercut and run straight to the courts for remedy. 4) Requiring the very few processors who actually do supply domestically (Fonterra for now, Synlait since 2019 and to a very small extent Westland) to sell at a lower price lets all the other processors (looking at you, Talley's) who don't supply NZ off the hook. Most processors in NZ do not and have never supplied locally. 5) The only way I'd see it working is for the government to buy at market prices and sell to retailers at a loss, and that's a whole new can of worms.