On 6 April 2021, the Australian Dairy Products Federation Inc. (ADPF) applied to the Australian Competition Tribunal (Tribunal) under section 101 of the Competition and Consumer Act 2010 for review of the ACCC’s determination (of 12 March 2021). This matter is now before the Tribunal and the ACCC determination has not come into effect.
The interim authorisation granted by the ACCC on 18 December 2020 remains in place.
Application for review by the Tribunal
On 6 April 2021 ADPF (an industry association representing commercial, post farm-gate members of the Australian dairy industry, including processors, traders and marketers of Australian dairy products) lodged an application for review of the ACCC's determination with the Tribunal.
The Tribunal has published the application, which can be found on the Tribunal's website.
As an application for review has been made to the Tribunal, the ACCC’s determination has not come into effect. A review by the Tribunal is a re‑hearing of the matter.
Background on QDO’s application for authorisation and ACCC determination
On 25 September 2020, the Queensland Dairyfarmers Organisation (QDO) lodged an application for authorisation for a licensing scheme for processors of milk and dairy products to apply a “Fair Go Dairy” logo to their products. The logo is intended to signal to consumers that the products bearing the mark are made from milk for which farmers have been paid a minimum price (known as the ‘Sustainable and Fair Farmgate Price’, or ‘SFFP’). The products which can display the logo include dairy milk, dairy cream, dairy desserts and cheese.
Under the licensing scheme QDO will grant a license to use the “Fair Go Dairy” logo to processors for use on dairy products made using no less than 80% unprocessed milk purchased from a farmer where:
- the farmer’s farm is located within Queensland
- the milk is derived from dairy cows located within Queensland
- the purchase price for the milk (per litre) is not less than the SFFP, and
- no milk used in the products may be sourced from outside of Australia.
The SFFP is determined by QDO using a formula for the Cost of Production multiplied by the CPI Adjustment Rate. The Cost of Production means the average cost of production for milk published by the Queensland Dairy Accounting Scheme. Further details on how the SFFP is set can be found in the application (particularly the updated Annexure A – provided on 4 March 2021) and QDO’s letters to the ACCC dated 27 November 2020 and 4 March 2021.
On 18 December 2020, the ACCC issued a draft determination proposing to grant authorisation for five years, and granted interim authorisation for QDO to continue to prepare and commence marketing of the scheme, and to negotiate license agreements with milk processors, but not to enter into and/or give effect to any license agreements for the scheme.
On 12 March 2021 the ACCC issued a determination authorising the Fair Go Dairy scheme for five years, until 3 April 2026. The ACCC’s final determination can be found under the Decisions heading below.
|Annexure A to Application – Fair Go Dairy Scheme Rules (updated) ( PDF 681.06 KB )||4 Mar 2021|
|Applicant – Revised method of SFFP calculation (corrected) ( PDF 319.06 KB )||4 Mar 2021|
|Applicant – Revised method of SFFP calculation ( PDF 113.1 KB )||25 Jan 2021|
|Applicant - Request for Interim Authorisation ( PDF 139.75 KB )||1 Oct 2020|
|Application Received ( PDF 7.93 MB )||25 Sep 2020|
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|Final Determination ( PDF 657.98 KB )||12 Mar 2021|
|Draft Determination and Interim Authorisation Decision ( PDF 534.87 KB )||18 Dec 2020|
|ACCC to Interested Parties re Draft Determination ( PDF 262.55 KB )||18 Dec 2020|
|ACCC to Interested Parties re Consultation Process ( PDF 298.54 KB )||2 Oct 2020|
|ACCC to Interested Parties re Final Determination ( PDF 250.92 KB )||12 Mar 2021|
|ACCC to Applicant re Request for Further Information ( PDF 260.15 KB )||12 Nov 2020|
Submissions - before draft decision
|Applicant’s response to interested parties submissions and ACCC request for information ( PDF 1.22 MB )||27 Nov 2020|
|Australian Dairy Farmers ( PDF 117.38 KB )||10 Nov 2020|
|Coles ( PDF 203.73 KB )||6 Nov 2020|
|Norco Co-operative Ltd ( PDF 383.06 KB )||6 Nov 2020|
|Lion Dairy & Drinks ( PDF 2.08 MB )||23 Oct 2020|
|Woombye Cheese Company ( PDF 661.92 KB )||23 Oct 2020|
|Maleny Cheese ( PDF 563.42 KB )||23 Oct 2020|
|Dairy Farmers Milk Co-operative (DFMC) ( PDF 103.28 KB )||21 Oct 2020|
|WAFarmers Dairy Council ( PDF 810.54 KB )||21 Oct 2020|
|Andrew Wallace MP ( PDF 112.6 KB )||20 Oct 2020|
|Lactalis ( PDF 393.58 KB )||19 Oct 2020|
|Queensland Farmers' Federation ( PDF 246.55 KB )||16 Oct 2020|
|Daneka Hill ( PDF 571.72 KB )||14 Oct 2020|
|Dept. Agriculture and Fisheries, Qld ( PDF 7.28 MB )||8 Oct 2020|
|Australian Dairy Products Federation ( PDF 438.81 KB )||26 Sep 2020|
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Submissions - after draft decision
|Norco Co-operative Ltd ( PDF 1.49 MB )||9 Mar 2021|
|Applicant's response to Interested Party submissions ( PDF 521.94 KB )||25 Feb 2021|
|Norco Co-operative Ltd ( PDF 821.22 KB )||5 Feb 2021|
|Australian Dairy Products Federation re SFFP calculation ( PDF 195.42 KB )||5 Feb 2021|
|Australian Dairy Products Federation ( PDF 302.44 KB )||29 Jan 2021|
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