ACCC issues notice to milk processor Brownes Dairy over alleged code breach
The nation’s competition watchdog has taken action against one of Australia’s largest domestic milk processors, Brownes Dairy, over alleged mandatory code violations.
One of Western Australia’s biggest dairy players has been slapped with a five-figure fine from the nation’s competition watchdog.
Brownes Foods Operations — known as Brownes Dairy — has paid penalties totalling $22,200 after the Australian Competition and Consumer Commission issued it with two infringement notices.
The notices relate to Brownes Dairy allegedly failing to comply with the mandatory Dairy Code of Conduct last year.
ACCC deputy chairman Mick Keogh said: “It is critical that processors take active steps to ensure compliance with the Dairy Code so that farmers have the certainty and transparency in relation to milk supply agreements that the Code is intended to provide.”
The watchdog alleges that Brownes did not comply with the Dairy Code by not specifying a definite end date of the supply period.
The ACCC also alleged that Brownes Dairy breached the code by including powers to unilaterally reduce the minimum price for milk supplied.
“One of the requirements of the Dairy Code is that processors ensure their milk supply agreements are compliant before publishing them on their websites, and in this instance Brownes Dairy published two supply agreements that were allegedly non-compliant with the Code.”
Brownes Dairy addressed the ACCC’s concerns in the 2021-22 agreements that it published last month.
Brownes Dairy also undertook to write to farmers that it had contracts with, advising that it will only exercise its rights under existing agreements to the extent they are consistent with the terms of these new agreements.
“Ensuring compliance with the Dairy Code remains an ACCC priority. We are continuing to assess agreements published on 1 June this year, and any identified breaches may result in the ACCC taking enforcement action where appropriate,” Mr Keogh said.
Brownes Dairy has been contacted for comment.
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