The Union Dairy Company has been fined $10,500 after the Australian Competition and Consumer Commission issued it with an infringement notice for failing to comply with its publishing obligations under the dairy code of conduct.
The code requires dairy processors to publish standard form milk supply agreements on their website by 2 pm on June 1 each year.
The ACCC alleges that instead of publishing its exclusive supply agreement on its website, UDC required dairy farmers to fill in an online form with data such as herd size and current processor before they could access the agreement.
UDC, a subsidiary of Warnambool's Midfield Group and based in Penola, South Australia, also allegedly did not publish a non-exclusive agreement until about two months after the June 1 deadline.
“Processors must make their milk supply agreements publicly available, rather than putting them behind a portal or other barrier,” ACCC deputy chair Mick Keogh said.
“In failing to properly publish its agreements by the time required by the dairy code, UDC may have made it more difficult for farmers to quickly access key information and identify the best supply agreement and milk processor for their circumstances.
“We're also concerned that UDC's delay in publishing a non-exclusive agreement may have sent the incorrect message to farmers that UDC is not obliged to offer such agreements, and that farmers may have missed out on the option to consider a UDC non-exclusive agreement.”