Union Dairy Company pays Australian Competition and Consumer Commission penalty
Union Dairy Company is paying a five-figure fine for an alleged breach of the dairy code reporting process — but the payment isn’t an admission of guilt.
UNION Dairy Company has paid a five-figure penalty after the national consumer watchdog alleged it failed to comply with its Dairy Code obligations.
Riddoch Trading Propreitary Limited, trading as the UDC, paid the $10,500 penalty after the Australian Competition and Consumer Commission issued it with an infringement notice.
The ACCC alleges that instead of publishing its exclusive supply agreement on its website, UDC required dairy farmers to fill in an online form with data such as herd size and current processor before they could access the agreement.
The consumer watchdog has also alleged that UDC also did not publish a non-exclusive agreement until about two months after the June 1 deadline.
ACCC deputy chairman Mick Keogh said processors must make their documents publicly available by the due date.
“Processors must make their milk supply agreements publicly available, rather than putting them behind a portal or other barrier,” he said.
“In failing to properly publish its agreements by the time required by the Dairy Code, UDC may have made it more difficult for farmers to quickly access key information and identify the best supply agreement and milk processor for their circumstances.”
“We’re also concerned that UDC’s delay in publishing a non‑exclusive agreement may have sent the incorrect message to farmers that UDC is not obliged to offer such agreements, and that farmers may have missed out on the option to consider a UDC non-exclusive agreement.”
UDC has been contacted by The Weekly Times for comment.
UDC bases its operations in Penola but is a subsidiary of the Midfield Group, a Warrnambool-based processing company.
The Weekly Times notes that the payment of a penalty specified in an infringement notice is not an admission of a contravention of the Dairy Code.
However, the ACCC can issue an infringement notice when it has reasonable grounds to believe a person or business has contravened a penalty provision of the Dairy Code.
Mr Keogh said the Dairy Code was legally binding and breaches may result in the ACCC taking enforcement action.
“We know that many farmers and processors are making time-critical milk supply decisions in June each year, so processors must make their documents publicly available by the due date,” he said.
“It’s very important that processors and farmers understand the requirements of the Dairy Code and comply with them.”
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