The Dairy Farmers Milk Co-operative Limited (DFMC) has paid a penalty of $11,100 after the ACCC issued it with one infringement notice for allegedly failing to comply with its publishing obligations under the Dairy Code.
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The Dairy Code requires most companies that buy milk from farmers to publish standard form milk supply agreements on their websites by 2.00pm on 1 June each year. These agreements must cover all the circumstances in which the company intends to purchase milk in the upcoming dairy season, so farmers can compare the minimum prices and contract terms on offer.
The ACCC alleges that DFMC did not publish any of its standard form milk supply agreements for the 2021-22 dairy season on its website by the publication deadline. DFMC has since published all of its milk supply agreements on its website.
“While DFMC doesn’t process milk, it was buying milk from member farmers to supply a processor, and so has the same legal obligations under the Code. “Failing to publish milk supply agreements on time makes it more difficult for farmers to access key information about the milk supply terms on offer. We know that many farmers have to make time critical supply decisions in June each year,†Mr Keogh said.
“The Code was introduced to improve price transparency in the dairy industry, so it is essential that processors and co-ops make their milk supply agreements publicly available by the 2.00pm deadline on 1 June. “The Dairy Code remains a priority for the ACCC, and it’s important that milk processors and other milk purchasers understand the requirements of the Dairy Code and actively comply with them,†Mr Keogh said.
“The ACCC is continuing to monitor compliance with the Dairy Code, and any breaches detected may result in enforcement action.â€
DFMC is a large farmer co-operative that purchases about 185 million litres of milk per year, which it sources from over 160 dairy farmers located across Victoria, South Australia, New South Wales and Queensland. ■