Farmers are calling for regulations that will actually work.

Cabinet has signed off on Primary Industries Minister Damien O'Connor's proposals to change the Dairy Industry Restructuring Act.

Farmers are pleased Fonterra will now get some choice who it picks milk up from, but open entry provisions stay the same.

Federated Farmers dairy chair, Chris Lewis, told Kate Hawkesby the current rules were formed about 18 years ago.

He says all they're asking for is new rules or regulations that are fit for purpose for 2020 onwards.

Lewis says they're facing a lot of challenges and need the Government to work with them to overcome these.