FY23 Early Commitment Milk Supply  

Statement of Circumstances in which ACM is prepared to enter into its Early Commitment  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.  ACM’s 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 2022, ACM will enter into an early commitment milk supply agreement for the exclusive supply of conventional milk in the following circumstances:

1. Only available to suppliers who entered into Early Commitment Milk Supply Agreement by 30 June 2022.
2. Supplier’s farm is located in the MurrayDairy, WestVicDairy and/or GippsDairy region.
3. Preference will be given to Suppliers who have current or pre-existing contractual relationships with ACM over proposed new suppliers.
4. Supplier has a current Dairy Food Safety Licence.
5. Supplier has demonstrated compliance with relevant legislative requirements in relation to milk production, environmental/effluent management and animal welfare.
6. Historic compliance by Supplier with ACM quality standards or proof of compliance with another milk processor’s quality standards and program.
7. Supplier demonstrates commitment to Occupational Health and Safety on Farm and for ACM staff and contractors.
8. Save and efficient tanker access is in place for collection of milk on Farm.
9. Supplier has sufficient production capacity to generate a minimum collection of 800 litres of milk which is no more than 48 hours old.
10. 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.

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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.