The new Competition and Consumer (Industry Codes-Dairy) Regulations 2019, also known as the Dairy Code came into effect from 1 January 2020 and Richmond Dairies supports the intent of this initiative.
Over the past few months, we have been reviewing our farmer contract to make sure it meets the requirements of the Dairy Code. Below, we have disclosed:
Statement of Circumstances
This Statement of Circumstances applies to:
Richmond Dairies is currently seeking exclusive milk supply agreements to be drawn from the geographic region of Northern New South Wales and South East Queensland.
Richmond Dairies is not currently seeking supply on a Non-Exclusive Supply basis however any proposal for Non-Exclusive Supply will be considered in accordance with the level of Exclusive Supply achieved and market demand.
Statements of Justification
Richmond Dairies is an export orientated dairy processor that manufactures dairy ingredients for further processing. Market returns are influenced by inherent risks including:
We offer a minimum price for the 12 month period from July to June in the coming financial year. Taking into account these and other market factors, we set this minimum price with a view to increasing where market outcomes have performed better than expectations.
Due to the simplicity of our current contract there have only been minor changes to our existing contract to meet the new Dairy Code. These changes include: