ACCC deputy chairman has eye on dairy code of conduct June deadline

As the June dairy code deadline approaches, Australia’s competition watchdog has urged farmers to be vigilant.

ACCC deputy chairman Mick Keogh. Picture: Adam Taylor

Australia’s competition watchdog is urging dairy farmers and processors to be aware of their rights and obligations under the Dairy Code of Conduct as an all-important June deadline looms.

The mandatory code requires most dairy processors to publish standard form milk supply agreements to cover all the circumstances in which they intend to purchase milk in the coming financial year on their websites by 2pm on June 1.

Dairy processors must also publish by June 1 a report that details information about disputes connected to their milk supply agreements that were subject to mediation or arbitration in the 12 months to the end of April.

ACCC deputy chairman Mick Keogh said processors whose milk supply agreements were not subject to disputes must still meet this reporting obligation.

“With the important June 1 publishing deadline approaching, dairy processors should be aware of their legal obligations under the code,” Mr Keogh said.

“The dairy code remains an ACCC priority this year and we’ll continue to be very active in enforcing it.

“As well as checking the compliance of milk supply agreements and dispute reports immediately after the June 1 publishing deadline, we’ll be conducting risk-based audits throughout the year, which includes randomly selected traders and those with a history of complaints made against them. These audits can occur at any time during the year.”

Last year was the first time the ACCC-enforced code was put into practice, with nearly all processors nationwide uploading their farmgate details.

However, the ACCC has so far announced two “enforcement outcomes” relating to failures to publish by last year’s June deadline and investigations into other processors are ongoing.

“This year we’re emphasising the requirement for processors to publish their dispute reports on time,” Mr Keogh said.

“The reports allow farmers to see if processors have been involved in any recent disputes about their milk supply agreements, which can help farmers decide who to supply their milk to.”

The ACCC has published information on its website, including a fact sheet for farmers, to help parties understand their rights and obligations under the code.

Farmers can report noncompliance to the ACCC by calling 1300 302 021.

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