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Australia fines Coles, Brownes over milk supply deals

Australia fines Coles and Brownes for restrictive milk supply agreements. Read more on Bond.az.

Benjamin Moore
ByBenjamin Moore- Senior Editor
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Australia's competition watchdog has fined Coles and Brownes Foods Operations over restrictive milk supply terms and unclear pricing.

Each company paid A$39,600 (about $28,270) after receiving infringement notices.

The ACCC alleges that Coles required exclusive supply and imposed volume caps in two milk supply agreements. Brownes failed to clearly state minimum prices or justify them.

The regulator said volume caps in exclusive contracts suppress farmers' output and lock them out of alternative processors.

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Australia fines Coles, Brownes over milk supply deals | Bond.az