ACCC proposes to allow National Foods and Dairy Farmers to enter into a milk haulage arrangement in South Australia
The Australian Competition and Consumer Commission has issued a draft determination proposing to authorise* an agreement between National Foods and Dairy Farmers to jointly tender out their raw milk transportation requirements in some regions of South Australia, ACCC Chairman, Mr Graeme Samuel, said today.
"The ACCC is satisfied that the proposed arrangements are likely to result in a net benefit to the public," Mr Samuel said. "In particular, the ACCC considers that there is benefit to the public associated with savings and efficiencies in milk collection and improvements to the efficiency, quality and productivity of the milk processing businesses of National Foods and Dairy Farmers."
National Foods and Dairy Farmers also applied to the ACCC for interim authorisation** to allow them to commence joint negotiations with the successful tenderer about the proposed milk haulage arrangements. In July 2007 the ACCC denied the request for interim authorisation due to a lack of specific urgency for the commencement of negotiations. The ACCC has now decided to grant interim authorisation, until the final decision is made.
The ACCC's draft determination will be available from the ACCC website.
The ACCC is seeking submission from interested parties in relation to its draft determination. Submissions can be made to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, GPO Box 3131, Canberra, ACT, 2601. Submissions can also be lodged by fax on (02) 6243 1121 or by email to: adjudication@accc.gov.au.
*Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.
**Interim authorisation allows an applicant to engage the conduct proposed for authorisation as if authorisation had been granted, before the ACCC issues its final decision. The ACCC will only grant authorisation in special circumstances.
