SADA welcomes compulsory publishing of milk supply agreements

SADA welcomes compulsory publishing of milk supply agreements

Dairy
POSITIVE CHANGE: SADA president John Hunt said the new publishing agreements would be a 'win-win' for dairyfarmers and processors.

POSITIVE CHANGE: SADA president John Hunt said the new publishing agreements would be a 'win-win' for dairyfarmers and processors.

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From June 1, milk processors will be required to publish standardised milk supply agreements to cover all circumstances in which they intend to purchase milk in 2020-21, in a move that has been welcomed by SADA president John Hunt.

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The roll out of the mandatory dairy industry code of conduct is set to step up another gear on June 1, when milk processors must publish standardised milk supply agreements to cover all circumstances in which they intend to purchase milk in 2020-21.

The agreements will have to be passed by the Australian Competition & Consumer Commission, and must cover all circumstances in which processors intend to buy milk. They are to be openly published on processors' websites for the full financial year.

SA Dairyfarmers' Association president John Hunt welcomed the change, and said it would provide farmers with the security to know that contracts are fair.

"There are certain things in contracts that used to be unfair and unbalanced, now it's all being passed through the ACCC so when you sign a contract now, you know that it's been looked over and there is nothing untoward in there," he said.

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"The terms have to be set out really clearly and it has to be fair to both the processor and the farmer, so it's a win-win.

"All processors have to publish their opening price by June 1, and while it all depends on where prices finish, not where they open, it's going to give farmers confidence that what they're signing is fair and reasonable," he said.

Smaller processors with an annual aggregated turnover of less than $10 million do not have to abide by the new publishing requirements, but Mr Hunt said those processors usually already had good relationships with their suppliers anyway.

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