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Collective bargaining: A key negotiation approach

Officially launched by the Federal Minister for Agriculture, Barnaby Joyce in Taree, NSW, the ‘Collective Bargaining for Dairy Farmers’ guide is an easy to read document for dairy farmers interested in forming collective bargaining groups to negotiate with milk buyers.

Prepared by Dairy Australia, in conjunction with Australian Dairy Farmers (ADF), the guide aims to provide practical advice and insights for farmers looking to level the playing field between small suppliers and large milk buyers.

The guide explores the mutual benefits both dairy farmers and milk buyers can receive when collective bargaining is employed effectively. While not suitable for all, collective bargaining has the potential to deliver many benefits to dairy farmers, including supply chain efficiencies, new marketing opportunities, greater input into contractual terms and more certainty on price.

From the milk buyers end, collective bargaining can result in enhance milk quality, guaranteed year-round fresh milk supplies and improved two-way communications with the collective bargaining group. These mutual benefits show that when effectively employed, collective bargaining can be a win-win for both parties involved.

In 2011, ADF renewed its authorisation grant from the ACCC to collectively bargain with milk processors. This authorisation enables dairy farmers to form and register collective bargaining groups under ADF’s existing authorisation without having to separately apply to the ACCC.

For more information about collective bargaining groups and authorisation guidelines, please contact the ADF Office: (03) 8621 4200

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