Dairy Code

Introduction

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:

  • Milk Supply Contract for Exclusive Supply
  • Milk Supply Contract for Variation of Exclusive Supply
  • Milk Supply Contract for Non-Exclusive Supply
  • Milk Payment Schedule

Statement of Circumstances

Exclusive Supply

This Statement of Circumstances applies to:

  • Milk Supply Contract for Exclusive Supply
  • Milk Supply Contract for Variation of Exclusive Supply

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.

Non-Exclusive Supply

  • This Statement of Circumstances applies to Milk Supply Contract for Non-Exclusive Supply

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:

  • Commodity market pricing
  • International demand and supply
  • Foreign currency markets
  • Sovereign risk

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.

Contractual Enhancements

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:

  • A defined term
  • A dispute resolution process
  • A process for terminating the contract and
  • A cooling off period for any new farmers wishing to sign with Richmond
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Richmond Dairies Pty Ltd
100 Dyraaba Street,
Casino NSW 2470 - Australia
Phone: (61 2) 6660 1111
Fax: (61 2) 6660 1100

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