Elanco’s acquisition of Bayer’s animal health business not opposed

The ACCC will not oppose Elanco’s acquisition of Bayer AG’s animal health business, after Elanco provided a court-enforceable undertaking to divest four animal parasite treatment brands.

The ACCC had concerns about the effect of the acquisition in the markets for sheep lice treatments, and worming treatments for cats and dogs.

Elanco will divest Avenge+ Fly, a sheep lice treatment, as well as Drontal, Profender and Droncit which treat gastro intestinal worms in cats and dogs. The future buyer or buyers of these brands will need to be approved by the ACCC.

Dairy code compliance under ACCC scrutiny

The ACCC is closely monitoring the introduction of the new mandatory dairy code of conduct, including by checking processors’ compliance with the code, and is ready to take enforcement action where appropriate.

The dairy code requires processors to only buy milk from farmers using compliant milk supply agreements, and to have published those agreements online before 2pm on 1 June 2020. Agreements must include a minimum milk price, among other conditions.

Fairer terms for wine grape growers but concerns remain about payment periods

Some of Australia’s biggest winemakers have agreed to change their supply agreements with grape growers after the ACCC raised concerns that the contracts contained terms which were likely to be unfair.

The ACCC contacted a number of large winemakers following its 2019 wine grape market study, which had highlighted that a number of winemakers were using standard form grape supply agreements which contained contract terms that appeared to be unfair.

Elanco proposes divestments of some animal health products in Bayer acquisition

The ACCC is seeking views on a divestment undertaking offered by Elanco in relation to its proposed acquisition of Bayer Aktiengesellschaft’s animal health business.

The ACCC has preliminary competition concerns in relation to worming treatments commonly used for cats and dogs, as the acquisition would combine ownership of Elanco’s Milbemax and, Interceptor brands with Bayer’s Drontal, Profender and Droncit brands.

Similarly, the ACCC also identified preliminary concerns due to the consolidation in sheep lice products.

Farmers and processors need to know their dairy code rights and obligations

The ACCC is encouraging dairy farmers and milk processors to make sure they understand their rights and obligations under the Dairy Code as the publishing deadline approaches for milk supply agreements.

The mandatory industry code of conduct, which came into effect on 1 January 2020, requires most dairy processors to publish on their websites by 1 June standard form milk supply agreements to cover all the circumstances in which they intend to purchase milk in the coming financial year.

What the dairy code means for farmers - fact sheet

This fact sheet is intended to help farmers understand their rights and obligations under the Dairy Industry Code of Conduct.

ACCC concludes investigation into CBH’s Paddock Planner App

The ACCC has concluded its investigation into Cooperative Bulk Handling Ltd’s (CBH) promotion of its Paddock Planner App (PP App) which it had commenced after concerns were expressed by growers.

The PP App is an online estimates tool which collects data from growers about their paddocks, crops and expected yields. For the 2019-20 harvest, CBH offered growers a 50 cents per tonne discount off grain receival fees if they submitted their crop estimates through the PP App.  

Issues in agricultural machinery markets to be examined

Concerns about manufacturer warranties and the servicing and repair of agricultural machinery are the focus of an ACCC discussion paper released today, along with an online survey seeking farmers’ feedback about their experiences.

Agricultural machinery: After-sales markets identifies a number of initial concerns relating to competition and fair trading issues, which the ACCC is seeking more information about.

Small business in focus - 1 July to 31 December 2019

This twice-yearly report provides a summary of ACCC activities in the small business, franchising and agriculture sectors.