A northern Victorian milk processor is taking Fonterra Australia to court with a claim that a field officer has been approaching ACM suppliers.
ACM, in Girgarre, claims Fonterra Australia’s field officer has been encouraging dairy farmers to break exclusive supply agreements.
The writ filed with the Supreme Court claims that the field officer encouraged ACM suppliers in Bamawm and Cohuna to break their contract in return for a higher milk price.
ACM is seeking an injunction to prevent Fonterra from approaching its suppliers.
Fonterra is denying the allegations made by ACM.
“We’ve always treated our competitors and farmers with respect, and we did not interfere or seek to interfere with any contracts as claimed,” a spokesperson for Fonterra said.
“As such, we don’t believe an application for an injunction was warranted.”
The writ, filed in the commercial division of the court, alleges the Fonterra field officer met with the Bamawm family in June, when a financial report was generated setting out what the supplier could receive under the Fonterra prices.
ACM then alleges that the farmer sought to secure a higher price from ACM, or they would break the contract.
ACM’s claim says that the same field officer had approached a Cohuna supplier in May, suggesting their contract with ACM could be broken.
ACM wrote to Fonterra with the allegations and asking Fonterra to desist, according to documents filed with the court; Fonterra replied that Fonterra staff did not attempt or intend to procure the breach of existing contracts.
Fonterra made no admission to the accusations and refused to provide any undertakings sought by ACM.
No date has yet been set for the hearing of the application, expected to be held in Melbourne.
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