Fonterra Legal Battle with Gippsland Farmers Over Milk Contract

Fonterra, a prominent New Zealand dairy cooperative, has taken urgent legal action in the Supreme Court of Victoria against Gippsland farmers Rita and Trevor Platt, aiming to prevent them from ceasing milk supply. Justice Richard Attiwill is presiding in the commercial division, with the case emphasising growing tensions in Australia's competitive milk procurement market. The conflict revolves around accusations that Fonterra violated the supply contract with the Platts, prompting them to threaten immediate cessation of milk supply from their 2,500-head dairy farm.

Despite Fonterra's mediation offers, the Platts have refused, prompting the processor to pursue legal action to secure its milk supply. Judicial mediation is scheduled for October 10, with a possible trial in December if the parties cannot reach a resolution. This dispute is occurring amidst other legal challenges faced by Fonterra in Australia, including accusations against its staff for poaching suppliers. This highlights the heightened conflicts in Australia’s dairy chain as processors compete for milk volumes amid evolving market pressures and contractual complexities.