ACCC issue Dairy Code reminder

The ACCC is urging milk processors and dairy farmers to review their obligations under the Dairy Code.

Under the code, which came into effect in January this year, dairy processors are required to publish standard form milk supply agreements to their websites by June 1.

Co-ops, retailers and brokers who buy milk directly from farmers are defined as processors, according to the code, although there are exemptions for those defined as operating a small business.

ACCC Deputy Chair Mick Keogh reminded processors they are also required to act in good faith in their dealings with one another.

“We are reminding processors of their obligations to comply with the code, including by publishing relevant contracts on their website before the June 1 deadline,” Mr Keogh said.

“The ACCC is responsible for enforcement of the code, and we will be checking for compliance. If farmers believe a processor hasn’t complied with their publishing obligations, they can contact the ACCC.”

“We would also encourage farmers to have a close read of these agreements once they are published, and to take the opportunity to compare the agreements offered by different processors.”

The code was introduced following a dairy inquiry in 2018 and is designed to provide greater transparency around pricing practices and contracting in the industry and give farmers greater bargaining powers.

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