ACCC authorises National Foods, Dairy Farmers to enter into a milk haulage arrangement in SA

The Australian Competition and Consumer Commission has issued a determination granting authorisation* to 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 benefits to the public will outweigh the potential anti-competitive detriment of proposed arrangements.  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.

The ACCC's determination will be available from the ACCC website.

Background

*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.