Saputo blames technical issues for delayed reporting on code of conduct day
Computer glitches are being blamed by Saputo after the milk processor missed the dairy code of conduct deadline for reporting its milk supply agreement to the general public.
TECHNICAL difficulties have been blamed by Saputo for missing a key deadline under the newly-introduced mandatory dairy code of conduct.
All processors nationwide were required to detail their opening prices for the 2020-21 season on their respective websites by 2pm on June 1.
Saputo missed the 2pm mark, eventually registering its milk supply agreement for public consumption on its website prior to 3pm.
A number of its competitors including Fonterra uploaded their opening prices in an avalanche of data only minutes prior to the 2pm cut-off point.
“Our milk supply agreements were published before 2pm on June 1,” a spokeswoman for Saputo management said.
“However, technical difficulties resulted in the files only being publicly visible via a direct link. An email went out to Saputo Dairy Australia suppliers at 2pm detailing our 2020-21 opening minimum milk prices.
“The website visibility issue was remedied before 3pm on June 1.”
The Australian Competition and Consumer Commission reiterated today it was investigating a number of processors over compliance issues.
“We are closely monitoring compliance with the code and are investigating a range of concerns about some processors,” an ACCC spokeswoman said.
Earlier this week, the ACCC announced it is investigating possible breaches of the code of conduct by Midfield-owned processor, Union Dairy Company, after UDC didn’t publish milk supply agreements on its website, as required under the code.
UDC chief operating officer Andrew Wellington said the processor’s original agreements were compliant and had not changed anything from the agreement.
“Rightly or wrongly, we didn’t put the document there for a click,” Mr Wellington said.
“And I’m glad that it wasn’t now, because we received all of our inquiry on the phone.
“The only people that have gone through the web to access it are competitive processors.”
Meanwhile, Rabobank has identified $6.35 a kg milk solids as its modelled base farmgate figure for southern Australia.
Rabobank senior dairy analyst Michael Harvey said European and North American markets had recently enjoyed a rebound in milk and dairy product prices following a coronavirus restriction-related downturn earlier this year.
“We are on a path toward recovery, but we are not out of the woods,” Mr Harvey said.
“Much of the price support has been driven by government intervention in the market
whether through dairy purchases, direct income payments, and managing surplus stock,
combined with the reopening of foodservice outlooks that has helped jump-start demand.”
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