The Bull

Monday 18

February, 2019 5:01 AM



Processors agree to amend milk contracts

Processors agree to amend milk contracts

Five major dairy processors have agreed to amend milk supply contracts with farmers on the back of concerns raised by the competition watchdog.

Share |

By AAP 03.12.2018 02:03 PM

Five major dairy processors have agreed to amend supply contracts after concerns from the competition watchdog farmers were being milked dry.

Brownes Food Operations, Lion Dairy and Drinks, Norco Co-operative Limited, Parmalat Australia, and Fonterra Australia will amend terms in supply contracts as part of ongoing co-operation with the Australian Competition and Consumer Commission over business-to-business laws enacted by the Australian Government in November 2016.

"Farmers should be getting a fair deal when they contract to supply milk to dairy processors," ACCC deputy chair Mick Keogh said.

"Our work focused on terms in milk supply contracts that have the potential to cause the greatest harm to farmers."

Most processors have agreed to provide dairy farmers with the right to terminate their contract if the processor varies supply terms such as price or quality requirements, placing the farmer in a worse position.

The final ACCC report on the competitiveness, trading practices, and transparency of the Australian dairy industry included a recommendation to improve contracting practices that dairy processors and farmers implement a mandatory code of conduct.

Meanwhile, the ACCC also raised concerns with some processors about lengthy notice periods for farmers to terminate their contracts, one-sided termination rights, broad indemnities, and terms that restrict a farmer's ability to lease a farm or sell their cattle.

Archive
  • Trump to get update on China trade talks

    US duties on $US200 billion worth of Chinese imports are set to rise to 25 per cent from 10 per cent if no deal is reached by March 1 to address US demands

  • SA govt unveils Repat Hospital plan

    The South Australian government has unveiled its master plan to redevelop Adelaide's Repatriation Hospital.

  • US-China talks to boost Aussie market

    Australia's share market is tipped to open higher on Monday after optimism surrounding US and China trade talks.

  • The Week Ahead

    In Australia, the December quarter Wage Price Index release dominates the local agenda in the coming week.

  • ASX closes flat as more companies report

    The Australian sharemarket has managed to finish in positive territory as more companies reported earnings results.

  • Stocks to watch

    Stocks of interest at the close of trade on the ASX on Thursday, February 14.

  • Germany to let NATO use its cyber skills

    Germany is to join the ranks of NATO countries making its cyber warfare skills available to the alliance to help fight hacking and electronic warfare, officials said on Thursday.

  • Domain posts $156.4m loss as listings fall

    Domain's first-half loss has widened to $156.4 million after Sydney and Melbourne's stumbling property markets forced it to take a large non-cash impairment.

  • Farmer denies scaring vegans with gunshot

    A WA farmer who asked vegans to stop filming calves on his property and leave, then fired a shot into farmland, says he wasn't trying to scare them.

  • CommSec Daily Report Friday

    The local sharemarket is mostly flat so far in a choppy session of trade. The ASX 200 is marginally higher by 6 points or 0.1% to 6066 points towards lunch after trading in a narrow 18 point band...

Markets
Index: Points Change Percent

PLEASE SUPPORT OUR SPONSORS, AUSTRALIA'S LEADING BROKERS:



© Copyright TheBull.com.au. All rights reserved.