The ACCC has not objected to the notification lodged by the Premium Milk Ltd (Premium Milk) to enable it to collectively negotiate on behalf of its current and future dairy producer members for the supply of raw milk to Lactalis Australia Ltd, Norco Co-Operative Limited, Dairy Farmers Milk Cooperative/Lion and other processors.
By lodging a notification with the ACCC, Premium Milk gains legal protection to participate in collective bargaining that may otherwise breach competition laws because it involves joint action by competitors. Participation in collective bargaining will be voluntary for members of Premium Milk and milk processors.
The ACCC considers collective bargaining is likely to result in public benefits in the form of transaction cost savings and enabling Premium Milk and its members to have better input into contracts. There is likely to be minimal, if any, public detriment.
The ACCC has decided to allow the immunity provided by the notification to remain in force for ten years from the date it was lodged. The notification will remain in force until 10 September 2030 unless it is withdrawn or revoked.
Copies of the notification and our Statement of Reasons are available on our public register at: Premium Milk Ltd.