Dairy processors have been provided with additional information on their legal obligations under the Dairy Code of Conduct in advance of the 1 June deadline for the release of new milk supply agreements for the 2023-24 dairy season.
The ACCC’s updated Dairy Code guidance, published today, provides further detail on how processors need to publish their milk supply agreements, when they can terminate an agreement with a farmer, how they can comply with the ‘single document’ requirement, and the meaning of a non-exclusive agreement under the code.
Importantly, it incorporates the Federal Court’s findings in the first ACCC proceedings brought under the Dairy Code.
The updates also simplify various aspects of the guidance to assist dairy farmers and processors to understand their rights and obligations under the code.
“The code has been in place now for almost three full dairy seasons and, generally speaking, we have seen compliance continue to improve. However, we urge processors to remain vigilant,” ACCC Deputy Chair Mick Keogh said.
“We want processors to familiarise themselves with our revised guidance so they are completely clear on their obligations under the code. For most processors this won’t require any major changes to current practices.”
Ensuring compliance with industry codes of conduct in the agricultural sector is a compliance and enforcement priority for the ACCC in 2023-24.
“We’ll be conducting further compliance checks following the publication of new milk supply agreements on 1 June to ensure processors are complying with the code,” Mr Keogh said.
Background
The Dairy Code (the Competition and Consumer (Industry Codes – Dairy) Regulations 2019) is a mandatory industry code prescribed under the Competition and Consumer Act 2010.
The code came into effect on 1 January 2020, and regulates the conduct of dairy farmers and processors by establishing rules for the use of standard form milk supply agreements in the dairy industry.
Under the Dairy Code, all processors that are not a small business entity must publish all of their standard form milk supply agreements on their website by 2pm on 1 June (AEST), and all milk supply agreements must comply with the code.
