Class action launched in Victoria over Fonterra’s price clawback
The price clawback case filed this week will be on behalf of farmers who supplied Fonterra during the 2015-16 season.
A CLASS action over Fonterra’s 2016 farmgate price clawback has been filed in Victoria’s Supreme Court.
The retrospective cut to prices paid to suppliers by Fonterra and rival Murray Goulburn sent shockwaves through the industry four year ago.
The case filed this week will be on behalf of farmers who supplied Fonterra during the 2015-16 season.
Adley Burstyner class action lawyer David Burstyner told ABC radio today the process was lengthy but could “get to trial in 18 months, maybe a bit more than that.”
“It’s been a long time coming. A lot of work has gone into this by stakeholders, by dairy farmers and some of the top QCs in the country to get this case off the ground,” he said.
“It’s been served on Fonterra and it’s well and truly up-and-running.
“If Fonterra does the right thing, it will settle with us (before further legal action is taken) but we’re getting ready for trial.
“The press always talks about it from $5.60 to $5.13 but if you were supplying in May and June (at the end of the season), you would have gone from a high six number to down to a $1.91 — so it’s much worse than what is sometimes reported.
“So this is just for dairy farmers. We stayed away from acting for shareholders or unit holders because if you sued Murray Goulburn for a unit holder, you were taking away Murray Goulburn farmer money, and that something we didn’t want to do.”
A Fonterra spokeswoman said the processor would “address these claims comprehensively at the appropriate time.”
“The ACCC investigated the 2016 milk price reduction thoroughly and in 2017 it decided not to take action against Fonterra,” the spokeswoman said.
“We’ve done a lot of work with our farmers since 2016 to rebuild trust and transparency.
“Fonterra takes its legal and regulatory obligations seriously and is committed to fully complying with them.”
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