The Australian Competition and Consumer Commission today issued a decision proposing to grant a substitute authorisation* allowing Premium Milk to continue representing a group of south-east Queensland dairy farmers in their collective negotiations with Parmalat Australia Ltd.
"Granting a replacement authorisation would allow those dairy farmers who have been represented in collective negotiations by Premium since 2001, to continue bargaining the terms of their milk supply contracts, including pricing, with Parmalat", ACCC Chairman, Mr Graeme Samuel, said today.
Premium has been operating under an interim authorisation since its previous authorisation expired on 30 June 2005 but it has sought full re-authorisation until 1 July 2010. The proposed substitute authorisation will also allow the dairy farmers and Parmalat to continue to give effect to contracts already entered into under Premium's previous authorisation.
"Premium has argued that the existing collective bargaining arrangements, which are fully supported by Parmalat, have resulted in benefits for the dairy farmers including cost savings and giving farmers certainty to invest and improve their businesses.
"The ACCC considers that the proposed replacement authorisation would provide certainty to the affected dairy farmers and Parmalat, so that they would be able to continue their negotiations without undue disruptions. Submissions received from interested parties in relation to the existing authorisation have not identified any substantial concerns with the arrangements and the proposed authorisation by the ACCC would simply allow the parties to maintain the status quo".
The ACCC seeks submissions from interested parties in relation to its draft determination. Submissions can be made to:
The General Manager
Adjudication Branch
Australian Competition and Consumer Commission
PO Box 1199
DICKSON ACT 2602
Submissions can also be lodged by email at adjudication@accc.gov.au.