Fonterra clawback class action: Farmer fury flickers five years since 2016 decision
Like many former Fonterra suppliers, Dannielle and Mick O’Loughlin are taking part in a class action against the Auckland-based processor over its 2016 clawback.
FOR Dannielle and Mick O’Loughlin, it was arguably the worst day of their dairying career.
Like many then Fonterra suppliers, the Gippsland farmers were shocked when the Auckland-based processor triggered its now infamous clawback nearly five years ago.
“I don’t think anyone could plan for it. Not only a price drop but having to pay back roughly 40 per cent of what you’d earned,” Mrs O’Loughlin, from Berrys Creek, said.
“It was shocking. Like most farmers, we planned ahead, set aside money for the leaner months at the end of the season and then the clawback happened. It hit a lot of farmers hard.”
In May 2016, Fonterra revised the prices it had set for the 2015-16 season and made the revision retrospective — meaning suppliers had to pay back a sizeable chunk of their income.
The class action, lodged with the Victorian Supreme Court last year, alleges that in doing so, Fonterra engaged in misleading and deceptive conduct, acted unconscionably and breached contracts it had with dairy farmers.
Mrs O’Loughlin has encouraged Fonterra suppliers from the 2015-16 season to take part in the class action spearheaded by Melbourne law firm Adley Burstyner and backed by regional firm Harwood Andrews.
“Get on board — you’ve got nothing to lose,” she said.
Adley Burstyner held an information session in Traralgon on Monday and founder David Burstyner encouraged more farmers to take part in the process.
“Farmers have nothing to lose by joining the action, and it doesn’t cost anything from farmers’ pockets to join,” he said.
A Fonterra spokeswoman said the processor had “completely overhauled” its relationship with farmers, “starting with the recently formed Fonterra Australia Suppliers’ Council.”
“The class action is funded by a litigation funding provider whose business is to fund litigation in order to gain a commercial return,” the spokeswoman said.
“The ACCC investigated the 2016 milk price reduction and decided not to take any action against Fonterra.”
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