FY25 ACM Organic Milk Supply – 1 – 3 Year Contract

Statement of Circumstances in which ACM is prepared to enter into a Milk Supply Agreement (published in accordance with section 12(2) of the Dairy Industry Code)

ACM is a commercial Milk processor with a plant located at Girgarre in northern Victoria. Decisions about the circumstances in which it is prepared to enter into milk supply agreements with dairy farmers are made with ACM’s long term business objectives in mind.

ACM’s focus is on the value-added stable dairy markets as close to the end consumers as possible. ACM’s business model prioritises the delivery of previously agreed quantities of milk to its customers under ongoing contracts. In order to increase reliability in the volume and quantity of its milk supply, ACM aims to develop positive ongoing working arrangements with a valued network of dairy farmer suppliers. ACM believes that this approach builds certainty and profitability for all stakeholders.

Set out below are the circumstances in which ACM will enter into one of its standard forms of milk supply agreement during the financial year commencing 1 July 2024 and ending on 30 June 2025. The decision as to which particular ACM standard agreement is entered into will be made by the supplier selecting the type of milk to be supplied and whether the supply is to be exclusive or non-exclusive:

1. Supplier’s farm is located within the local Government areas: Victoria – Alpine, Bass Coast, Baw Baw, Campaspe, Colac Otway, Corangamite, Gannawarra, Greater Shepparton, Indigo, Latrobe City, Moira, Moyne, South Gippsland, Towong, Wangaratta, Wellington. Southern New South Wales – Berrigan, Murray River.
2. Initial preference will be given to Suppliers who have a current or pre-existing contractual relationship with ACM over proposed new suppliers.
3. Supplier has a current Dairy Food Safety Licence and meets ACM’s assessment and verification checks.
4. Supplier has demonstrated compliance with relevant legislative requirements in relation to milk production, environmental/effluent management and animal welfare.
5. Historic compliance by Supplier with ACM’s quality standards or proof of compliance with another milk processor’s quality standards and program.
6. Supplier demonstrates commitment to Occupational Health and Safety on Farm and for ACM staff and contractors
7. Safe and efficient tanker access is in place for collection of milk on Farm.
8. Supplier has sufficient production capacity to generate a minimum collection of 500 litres of milk which is no more than 48 hours old.
9. ACM may, at any time, decline to enter into any new milk supply agreements if and when it has secured sufficient supply of milk to meet its then current contractual commitments to its customers.

‍