ACCC proposes to authorise collective bargaining by chicken growers in Queensland

The Australian Competition and Consumer Commission has issued a draft decision proposing to allow broiler chicken growers who are members of Queensland Chicken Growers Association to collectively bargain with Inghams, Baiada and Golden Cockerel for ten years.

Currently, Queensland chicken growers and processors can collectively bargain under an authorisation provided by state legislation.

Authorisation would allow the growers to continue to collectively bargain with processors in the absence of a state based statutory exemption. Collective bargaining arrangements can generate transaction cost savings and provide broiler chicken growers with the opportunity to have effective input into the terms and conditions of their contracts with chicken meat processors.

There are approximately 58 chicken growing farms currently contracted to three processors in Queensland. The ACCC has previously authorised similar collective bargaining arrangements for chicken growers in Western Australia, Victoria, South Australia and Tasmania.

Authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

The ACCC now invites comments on the draft determination. The ACCC's draft determination and information about making a submission are available from the ACCC’s website www.accc.gov.au/AuthorisationsRegister.