The Australian Competition and Consumer Commission has authorised South Australian broiler chicken growers to collectively bargain with Inghams for ten years.
The collective bargaining arrangements provide a greater opportunity for broiler chicken growers to have more effective input into the terms and conditions of their contracts with Inghams. The collective bargaining arrangements are also likely to generate some transaction cost savings.
There are approximately 68 chicken growing farms contracted to three processors in South Australia. The ACCC notes that chicken growers have historically had limited opportunities to switch between processors and that they often prefer to bargain collectively with the processor that they supply.
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.
Further information on the final decision can be found on the ACCC's public register at www.accc.gov.au/AuthorisationsRegister.