Legal Battle Brews in Aussie Dairy Sector
Sourse: dairynews.today
Australian Consolidated Milk is suing Fonterra over allegations of supplier poaching, highlighting a fierce competition for raw milk in Australia.
A significant legal dispute has erupted in the Australian dairy industry, with northern Victorian milk processor Australian Consolidated Milk (ACM) filing a lawsuit against its major competitor, Fonterra Australia. ACM alleges that a Fonterra field officer has been actively encouraging its suppliers to breach their exclusive milk supply agreements. This legal action, filed with the Supreme Court, seeks an injunction to prevent Fonterra from continuing to approach ACM suppliers and highlights the intense competition for raw milk in the Australian agribusiness sector.
The lawsuit, dated August 6, 2025, claims Fonterra’s alleged attempts to lure farmers away with promises of a higher milk price. ACM reports that in June, a Fonterra representative met with a family farm in Bamawm, displaying a financial report indicating potential gains under Fonterra’s pricing. This led the farmer to threaten to break their contract unless ACM matched the offer. A similar incident reportedly occurred with a Cohuna supplier in May, showing a pattern of behavior from the Fonterra officer.
Fonterra, on the other hand, has denied all allegations, insisting its staff did not interfere with contracts and considers the injunction application unnecessary. Despite ACM's demands for the alleged poaching to cease, Fonterra has not provided any undertakings.
This lawsuit creates uncertainty among Australian dairy farmers and suppliers, illustrating the competitive nature of the market for raw milk. The outcomes could affect farm-gate prices and supply contract stability. The dispute sheds light on aggressive strategies in securing milk supply, potentially impacting both local and international dairy markets as a precedent for acceptable conduct in dairy economics.
The lawsuit, dated August 6, 2025, claims Fonterra’s alleged attempts to lure farmers away with promises of a higher milk price. ACM reports that in June, a Fonterra representative met with a family farm in Bamawm, displaying a financial report indicating potential gains under Fonterra’s pricing. This led the farmer to threaten to break their contract unless ACM matched the offer. A similar incident reportedly occurred with a Cohuna supplier in May, showing a pattern of behavior from the Fonterra officer.
Fonterra, on the other hand, has denied all allegations, insisting its staff did not interfere with contracts and considers the injunction application unnecessary. Despite ACM's demands for the alleged poaching to cease, Fonterra has not provided any undertakings.
This lawsuit creates uncertainty among Australian dairy farmers and suppliers, illustrating the competitive nature of the market for raw milk. The outcomes could affect farm-gate prices and supply contract stability. The dispute sheds light on aggressive strategies in securing milk supply, potentially impacting both local and international dairy markets as a precedent for acceptable conduct in dairy economics.
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