Friday, March 29, 2024

Lactalis found breaching Dairy Code of Conduct

Recent stories

The Federal Court has found Lactalis Australia Pty Ltd (Lactalis) breached the Dairy Code of Conduct by failing to meet some of its obligations in relation to the 2020-21 milk season, in court proceedings brought by the ACCC.

Australian Competition & Consumer Commission (ACCC) Deputy Chair Mick Keogh described the decision as a win for dairy farmers, who generally have limited bargaining power in their dealings with much larger processors.

“This is an important case for the ACCC as these are the first proceedings we have instituted under the Dairy Code of Conduct,” Mr Keogh said.

The Code commenced in 2020 to address systemic transparency issues and bargaining power imbalances between dairy farmers and processors.

The Court found that Lactalis breached the Code when it failed to publish its milk supply agreements on its website by the Code’s deadline of 2pm on 1 June 2020, and instead required dairy farmers to sign-up through a web portal to receive them by email.

The Court also found that Lactalis breached the Code by publishing and entering into agreements that allowed them to unilaterally terminate the agreement in circumstances that did not amount to a material breach.

In particular, Lactalis was permitted to unilaterally terminate the agreement when, in their opinion, the farmer had engaged in “public denigration” of processors, key customers or other stakeholders. A hearing on relief, including penalties, will be held at a later date.

On Our Selection News 6 October 2022

This article appeared in On Our Selection News, 6 October 2022.

KEEP IN TOUCH

Sign up for updates from Australian Rural & Regional News

Manage your subscription

We don’t spam! Read our privacy policy for more info.

For all the news from On Our Selection News, go to https://www.our-news.com.au/on-our-selection-news