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 consumer as possible.  Its business model prioritises the delivery of previously agreed quantities of milk (whether that be conventional, A2 or organic) to its customers under ongoing contracts.  In order to increase reliability in the volume and quality 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.

For the year commencing 1 July 2021, ACM will enter into one of its standard forms of milk supply agreement (as applicable to the type of milk to be supplied and payment terms/exclusivity option selected by the supplier) subject to existence of the following circumstances:

1. The supplier’s farm is located in the MurrayDairy, WestVicDairy and/or GippsDairy region.
2. Initial preference will be given to suppliers who have current or pre-existing contractual relationships with ACM over proposed new suppliers, provided that such pre-existing suppliers have entered into new milk supply agreements by 16 June 2021;
3. 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.