A mandatory code has been implemented for dairy farmers as a
result of the Competition and Consumer (Industry Codes-Dairy)
Regulations 2019. Among other things, the regulations require
a processor to only buy milk where there is a supply agreement.
While the milk supply agreement does not need to be in writing,
it is clearly intended there will be a move towards any agreements
being in writing.
The code places an onus on a processor to make a written record
of an unwritten on a processor to make a written record of an
unwritten milk supply agreement and give a copy to the farmer. If
the supply period of the agreement is 90 days or longer, there is
an additional obligation on the processor to make all reasonable
efforts to obtain from the farmer a written acknowledgement that
the record is a complete and accurate record of the oral
agreement.
