The Australian Competition and Consumer Commission has re-authorised collective negotiations by Premium Milk Ltd on behalf of its dairy farmer members with Parmalat Australia Ltd for a further ten years.
Premium has been collectively negotiating farm-gate milk prices and milk standards with the dairy processor, Parmalat, under an ACCC authorisation, and with Parmalat’s support, since 2001.
Historically, Premium has represented dairy producers located in south-east Queensland, however, the new arrangements will allow dairy producers in northern New South Wales to join the bargaining group.
"The ACCC considers that the collective bargaining arrangements are likely to continue to be of benefit particularly by providing the opportunity for increased dairy farmer input into contracts," ACCC chairman Graeme Samuel said.
Participation in the collective negotiations is voluntary for both Premium's dairy farmer members and Parmalat. Authorisation does not extend to a collective decision by dairy farmers to boycott Parmalat if it refused to participate in collective negotiation or for other reasons including a failure to reach a collective agreement.
Collective bargaining refers to competitors collectively negotiating terms and conditions with a supplier or customer. Without authorisation, it can raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
The ACCC's determination will be available from the ACCC website (www.accc.gov.au/AuthorisationsRegister) and by following the links to this matter.