Dairy processors to amend contracts with farmers

Fonterra, Parmalat, Lion, Brownes, and Norco have all agreed to amend their milk supply agreements after The Australian Competition and Consumer Commission (ACCC) found them to be unfair.

The ACCC said it has been working with dairy processors to ensure that terms in the contracts they offer farmers comply with the law.

The ACCC said it had raised concerns with some processors about lengthy notice periods for farmers to terminate their contracts, one-sided termination rights, broad indemnities, and terms that restrict a farmer’s ability to lease a farm or sell their cattle.

Most processors had now agreed to provide dairy farmers with the right to terminate their contract if the processor varies supply terms, such as price or quality requirements, placing the farmer in a worse position, the regulator said.

“Assessing unfair contract terms in the dairy industry is complex and requires careful consideration,” ACCC Deputy Chair Mick Keogh said. “Our work focused on terms in milk supply contracts that have the potential to cause the greatest harm to farmers.

“The ACCC worked with each processor individually to ensure amendments did not disadvantage farmers.

“Where we raised concerns, most processors worked with us to find a solution to better balance farmers’ rights under the contracts,” Keogh said.

The ACCC embarked on an indepth inquiry into Australia’s dairy industry in 2016 to investigate sharing of risk along the supply chain, supply agreements and contracts, competition, bargaining and trading practices in the industry and the effect of world and retail prices on profitability.

Date : 3 August 2015

Food and Drugs Administration (FDA) officials have raided Amul’s godown here and took away six samples of its various milk products for testing.

The FDA officials also directed to destroy milk pouches stored in the godown, which were curdling, officials said.

“We were getting regular complaints about various Amul milk products sold in the open market,” said FDA designated officer Vineet Kumar.

The samples of Amul Ghee, ice creams, fresh cream, Badam shake, Homogenised milk and Standardised milk were taken for testing.

All samples will be sent to regional testing laboratory for analysis, the officer said.

When contacted Samir Saxena, Amul’s Head of the Quality Assurance and New Product Development department based at Anand in Gujarat, said that some times milk pouches get damaged during transit as a result of which curdling takes place.
Source: ETRetail.com