Commonwealth Consolidated Regulations

COMPETITION AND CONSUMER (INDUSTRY CODES--DAIRY) REGULATIONS 2019 - REG 33

Unilateral variations by farmers

  (1)   The milk supply agreement must specify the circumstances (if any) in which the farmer may unilaterally vary the agreement.

Unilateral variations by processors

  (2)   The milk supply agreement:

  (a)   subject to section   28, must not allow the processor to unilaterally vary the agreement other than as mentioned in paragraph   (b) of this subsection; and

  (b)   subject to subsections   (3) and (4), must allow the processor, if there is a change in a Commonwealth, State or Territory law, to unilaterally vary the agreement:

  (i)   to the extent necessary to comply with the changed law; but

  (ii)   without reducing a minimum price under the agreement.

Note:   This section applies to unilateral variations and does not affect the power of the processor and farmer to agree to vary the milk supply agreement, such as to increase a minimum price.

  (3)   To avoid doubt, paragraph   (2)(b) does not require or permit the agreement to allow a retrospective step down.

Note 1:   Retrospective step downs are prohibited: see section   27.

Note 2:   For the circumstances in which the milk supply agreement may allow for unilateral prospective step downs, see section   28.

Varied agreements must comply with this Code

  (4)   The milk supply agreement must not allow the processor or farmer to unilaterally vary the agreement if, following the variation, the agreement would not comply with this Code.

Processes for unilateral variations

  (5)   The milk supply agreement must specify the processes by which the agreement may be unilaterally varied.

  (6)   The milk supply agreement must require a unilateral variation of the agreement to be in writing.

  (7)   The milk supply agreement must require a party (the first party ) to the agreement to give to the other party, as soon as practicable after the first party unilaterally varies the agreement:

  (a)   the variation; and

  (b)   written notice of:

  (i)   the reason for the variation; and

  (ii)   the day the variation takes effect.

Note:   See also section   40.