Part 2 of the Regulations prescribes a mandatory industry code in relation to processors purchasing milk from farmers (Dairy Code). Under the Dairy Code: (a) processors and farmers must deal with each other in good faith (see section 11); and (b) processors must publish standard forms of milk supply agreements on or before each 1 June (see section 12); and (c) processors must only purchase milk under milk supply agreements that are in writing (or recorded in writing) and that comply with the requirements of the Code (see Subdivisions C and D of Division 2 of Part 2); and (d) retrospective step downs are completely prohibited and unilateral prospective step downs are permitted only in certain exceptional circumstances (see sections 27, 28 and 39); and (e) processors may unilaterally vary milk supply agreements only to the extent necessary to comply with a change in the law (see section 33); and (f) complaints and disputes arising under or in connection with a milk supply agreement may be dealt with and resolved in accordance with the complaint handling procedure provided in the agreement or by mediation or arbitration (see Subdivision F of Division 2 of Part 2). The Code, other than the obligation to deal in good faith, does not apply to processors that are small business entities (see section 8).
Australia · 2019-12-12