Commonwealth Consolidated Regulations

COMPETITION AND CONSUMER (INDUSTRY CODES--DAIRY) REGULATIONS 2019

- made under the Competition and Consumer Act 2010

TABLE OF PROVISIONS

   PART 1--PRELIMINARY

   1.      Name  
   3.      Authority  
   4.      Simplified outline of this instrument  
   5.      Definitions  
   5A.     Functions of the Ombudsman relating to the Code  
   6.      Reviews  

   PART 2--DAIRY--INDUSTRY CODE

           Division 1--Introduction

   7.      Mandatory industry code in Division 2  
   8.      Exception for processors that are small business entities  
   9.      Obligations of farmers  
   10.     Interaction with Food and Grocery Code of Conduct  

           Division 2--Dairy industry code

              Subdivision A--Processors and farmers must deal in good faith

   11.     Obligation to deal in good faith  

              Subdivision B--Processors must publish standard forms of milk supply agreements

   12.     Requirement to publish standard forms of agreements each 1 June  
   13.     Published standard forms of agreements must comply with Code  
   14.     Published standard forms of agreements must include statements of justifications for minimum prices  
   15.     Published standard forms must be genuine  

              Subdivision C--Requirements for milk supply agreements

   16.     Requirement to have milk supply agreements  
   17.     Requirement for milk supply agreements to comply with Code  
   18.     Written records of unwritten milk supply agreements  
   19.     Written records of unwritten variations of milk supply agreements  
   20.     Written records of unwritten terminations of milk supply agreements  

              Subdivision D--Contents of milk supply agreements

   21.     Purpose of this Subdivision  
   22.     Written milk supply agreements  
   23.     Cooling - off period  
   24.     Supply periods  
   25.     Quality and quantity of milk  
   26.     Minimum price  
   27.     Minimum price--retrospective step downs prohibited in all circumstances  
   28.     Minimum price--unilateral prospective step downs prohibited except in limited exceptional circumstances  
   29.     Fees for services  
   30.     Transfer of ownership  
   31.     Combining exclusive supply and a maximum volume prohibited  
   32.     Combining exclusive supply and tier pricing prohibited  
   33.     Varying milk supply agreements unilaterally  
   34.     Terminating milk supply agreements unilaterally  
   35.     Loyalty payments  
   36.     Extensions  

              Subdivision E--Other matters relating to milk supply agreements

   37.     Other terms  
   38.     Emerging trading and marketing arrangements  
   39.     Penalties for retrospective step downs  
   40.     Penalties relating to unilateral variations and terminations  
   41.     Application of termination of agreement  
   42.     Penalties for withholding loyalty payments  

              Subdivision F--Complaints and disputes

   43.     Milk supply agreement must provide for complaint handling procedure and mediation and may provide for arbitration  
   46.     Resolving complaints and disputes--general  
   47.     Dealing with complaints in accordance with internal complaint handling procedure  
   48.     Mediation  
   49.     Termination of mediation  
   50.     Costs of mediation  
   51.     Arbitration  
   52.     Termination of arbitration  
   53.     Costs of arbitration  
   54.     Confidentiality requirements  

              Subdivision G--Records and reporting

   55.     Record - keeping requirements  
   56.     Report on disputes  

   PART 3--APPLICATION--AND TRANSITIONAL PROVISIONS

           Division 1--Application of this instrument

   57.     Milk supply agreements entered into before 1 January 2020  
   58.     No acquisition of property otherwise than on just terms  

           Division 2--Amendments made by the Competition and Consumer (Industry Codes--Dairy) Amendment (2023 Measures No. 1) Regulations 2023

   59.     Application of amendments made by the Competition and Consumer (Industry Codes--Dairy) Amendment (2023 Measures No. 1) Regulations 2023