Fonterra's made a 66-page submission to MPI in a bid to put an end to what's known as the "open entry" rule.
Under current law, the dairy co-operative is obliged to pick up milk from any shareholding farmer in its collection area, no matter how far away it is or the state of the farm.
Chairman John Monaghan told Mike Hosking Fonterra wants more control.
"If they are farming in an environmental area where we'd prefer not to pick the milk up because it's a sensitive area of New Zealand, we'd like the right to say no."
He says that somewhere like the Mackenzie Basin, they currently don't have the right to say no.
Monaghan says that it is not in the interests of New Zealanders or Fonterra.
Fonterra argues the Dairy Industry Restructuring Act had achieved what it was set up to do in 2001, which was create competition, and now the open entry rule should be dumped.
Monaghan denies that they want to teach anyone a lesson or are attempt to green-wash anyone.
He says that he is not sure how the proposal has been received, but believes it is going well.
"Our preference is to see open entry fully removed. The original hurdles were set at 85 per cent, but we're talking about 75 per cent."