Australian Dairy Farmers (ADF) welcomes today’s announcement by the ACCC in initiating proceedings in the Federal Court against the actions of Murray Goulburn a year ago where they cut the milk price paid to farmers for the year.
The ACCC has stressed the lack of transparency in price notification when considering the actions of Murray Goulburn and is now seeking orders through the Federal Court.
Interim ADF CEO, John McQueen said the issue of price transparency and unfair/unconscionable contract terms and conditions has been a high priority issue for ADF for more than 15 years and it is pleasing that we are seeing some significant recognition that dairy farmers need to be treated much more fairly than they have been in the past.
“Over the past 7 months, ADF in collaboration with processors and farmers have been working to develop a Code of Practice on Contractual Arrangements which is almost ready for signing.
“This Code will go a long way to ensuring the actions taken a year ago will lead to more transparency.
“We are also pleased the ACCC has recognised the nature of the Murray Goulburn Cooperative and has decided against seeking financial penalties which will negatively impact the farmers who were adversely affected in 2016”, said Mr McQueen.
While ADF were surprised that the ACCC is not taking any action against Fonterra, we acknowledge the ACCC is an independent regulator and after applying the law has concluded that they were more transparent in their activities.
Mr McQueen added that ADF also welcomes the ACCC proposed actions, which will provide a strong message to all processors that the independent regulator is serious about addressing breaches of Competition Law.
“We believe the adoption of the Code of Practice on contractual arrangement will bring significant improvements in relationships between farmers and processors”, said Mr McQueen.
Media Contact:
Bernadette Marr, Media and Communications Manager
M: 0447 161 919
E: media@australiandairyfarmers.com.au