Saputo called out by Australian Competition and Consumer Commission
Saputo has been rebuked by the Australian Competition and Consumer Commission over a dairy code breach, which the Canadian processor claims it will fix.
AUSTRALIA’S competition watchdog says Saputo was “likely to have breached” the mandatory dairy code of conduct by missing an important deadline.
The Australian Competition and Consumer Commission says Saputo have promised to review and improve its internal processes after the Canadian-owned processor failed to publish its milk supply agreements by the required 2pm deadline on June 1.
Saputo published the milk supply agreements it intended to offer for the 2020-21 milk season at around 3pm on June 1 — allowing it to assess what its rivals were offering.
In a statement today, the ACCC said it investigated the events surrounding Saputo’s failure to publish by the deadline.
The national watchdog obtained evidence that the delay was caused by a very late technical failure, which it said Saputo took immediate steps to correct.
“Saputo has undertaken to examine its internal processes, review the factors that contributed to the breach and make any necessary changes to ensure it meets the publishing requirements of the dairy code in future,” an ACCC spokesman said.
“While the ACCC accepts that this alleged breach was inadvertent, all dairy processors are expected to comply with the code and should ensure they have proper processes in place, as well as legal and technical support, to enable them to meet their publishing requirements.
“The ACCC takes dairy code compliance very seriously. Non-compliance with the dairy code may result in the ACCC taking enforcement action, including court proceedings seeking a financial penalty.”
A Saputo spokeswoman said: “Our milk supply agreements were published before 2pm on June 1. However technical difficulties resulted in the files only being publicly visible via a direct link.
“An email went out to Saputo suppliers at 2pm detailing our 2020-21 opening minimum milk prices. The website visibility issue was remedied before 3pm on June 1.
“Saputo takes its obligations under the code seriously and is committed to continue fulfilling all code requirements.”
Saputo offered an average farmgate price of $6.40 a kg milk solids — higher than Fonterra’s initial $6.06 per kilo offering.
The New Zealand rival lifted its average price to $6.40 a kg milk solids only 48 hours after the June 1 deadline following a supplier backlash.
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