Transitional Arrangements

Milk supply agreements entered into

BEFORE 1 January 2020

The Dairy Code does not apply at all (except in respect to the Subdivision B—Processors must publish standard forms of milk supply agreements) to any milk supply agreements entered into before 1 January 2020 until the end of the transitional period, which is that period Beginning on 1 January 2020 and Ending on the earlier of:

(i) the day the agreement is first varied on or after 1 January 2020 (except if the only effect of the variation of the milk supply agreement is to increase a minimum price under the agreement), and

(ii) 31 December 2020.


Milk supply agreements entered into

AFTER 1 January 2020

The transitional provisions do not apply to a milk supply agreement entered into on or after 1 January 2020 and the Dairy Code applies.

Contents of the Dairy Code of Conduct

Part 1—Preliminary

1   Name

2   Commencement

3   Authority

4   Simplified outline of this instrument

5   Definitions

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

44   Mediation adviser and mediators

45   Arbitration adviser and arbitrators

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