On 12 April 2023, the Australian Competition and Consumer Commission (the ACCC) granted re-authorisation to the Dairy Farmers Milk Co-operative Ltd (the Co-operative) to give effect to ‘back- to-back arrangements’ with regard to milk purchasing policies and pricing arrangements, as set out in certain clauses in the Milk Aggregation Supply Agreement between the Co-operative and Bega. The back-to-back arrangements provide that:

  • the Co-operative must adopt the same milk purchasing policy (including price structure) in relation to its acquisition of milk from Co-operative members as Bega applies to its purchase of milk from the Co-operative (clause 4.4)
  • the Co-operative must sell the milk it acquires from the Co-operative members to Bega on the same terms and conditions relating to payment, pricing, collection and quality as contained in its milk supply agreements with the Co-operative members (clause 4.5.2)
  • the Co-operative must adopt the same milk price in relation to the purchase of milk by the Co-operative from Co-operative members as the Co-operative receives from Bega for the milk it sells to Bega (clause 5.6).

The ACCC granted authorisation for a period of 10 years, until 31 July 2033, as sought.

Further details about the application and determination are available on the ACCC’s public register.