The ACCC proposes to grant re-authorisation to Dairy Farmers Milk Co-operative (the Co-operative) to give effect to back-to-back arrangements between the Co-operative, its members and Bega. The arrangements provide that:
- the Co-operative must adopt the same milk purchasing policy in relation to its acquisition of milk from its members as Bega applies to its purchase of milk from the Co-operative
- the Co-operative must sell milk acquired from its members to Bega on the same terms and conditions relating to payment, pricing, collection and quality as contained in its milk supply agreements with its members
- the Co-operative must adopt the same milk price in relation to milk it purchases from its members as the Co-operative receives from Bega for the milk it sells to Bega.
The ACCC proposes to grant re-authorisation for a period of 10 years.
The ACCC is now seeking submissions in response to the draft determination by 30 March 2023, before making its final decision. Further details about the application and how to make a submission are available on the ACCC’s public register.