The Australia Dairy Products Federation has released a template sample dairy contract, as the deadline approaches for most Australian farmers to sign new code-compliant contracts.
The mandatory Dairy Code of Conduct came into effect on January 1 for new contracts, but most farmers existing arrangements extend until June 30.
The code implements new and widespread changes, including mandating certain terms and obligations in milk supply agreements and prohibiting certain activities.
By June 1, processors must publish standard form agreements for every supply arrangement they propose to offer for the upcoming season.
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ADPF said its template was not intended to be a whole contract.
It was designed to provide code-compliant terms to help dairy processors and farmers negotiating a milk supply agreement.
It included everything required in an agreement under the code, but not other matters.
Dairy processors and farmers could negotiate and agree to additional terms and conditions consistent with the code.
The template aimed to complement other dairy code resources being developed by Australian Dairy Farmers and Dairy Australia.
It was modelled on the Australian Competition and Consumer Commission example Horticulture Produce Agreement and was prepared by ADPF in consultation with its legal team and industry members.
"There is plenty of 'grease on the wheels' of the commercial transaction of buying and selling raw milk and adopting this document facilitates compliance with the code," ADPF president Grant Crothers said.
"Our message to all of industry is simple: follow this template to support compliance with the code."
It was not in anyone's interest to have members or dairy farmers non-compliant with this new important legislation.
ADPF recommends dairy processors and farmers seek their own legal advice about their individual circumstances and agreements.
Copies of the template are available by contacting the ADPF on info@adpf.org.au.