“The expected benefits of this process are for the eastAUSmilk member to better understand their current milk processor supply options, historical milk flow, volume, components and quality, and how that might impact milk pricing and milk supply options,” eastAUSmilk consultant Matt Hall said.
All negotiations with milk processors are led by members and must be conducted under the dairy industry code that came into effect on January 1, 2020.
The Milk Supply Agreements offered or that are in place, determine the conditions of supply and contract arrangements are between milk processors and milk suppliers.
“If a number of eastAUSmilk members who are located in a similar geographic area and that have similar end dates to their current Milk Supply Agreements wanted to form a collective bargaining group, eastAUSmilk can also assist with this process,” Mr Hall said.
“A collective bargaining group, refers to an ACCC-approved organisation formed by dairy farmers coming together to collectively negotiate with milk processors regarding pricing and other terms of sale, essentially giving them greater bargaining power as a united group rather than negotiating individually.
“There are some clear advantages and challenges with collective bargaining groups that need to be considered before forming a group, if you are considering a collective bargaining group some research is recommended.”
If you are an eastAUSmilk member or considering becoming a member and you’re coming to the end date for your current Milk Supply Agreement and would like to have a conversation about understanding your milk flow, including volume components and milk quality and the resulting current milk pricing and or forming a collective bargaining group, contact Matt Hall on 0459 234 720.
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