Coles and Brownes have each paid $39,600 in penalties after the ACCC issued each company with two infringement notices for separate alleged contraventions of the Dairy Code of Conduct.

The ACCC alleges that Coles breached the Dairy Code by publishing two separate milk supply agreements that required the supplier to provide milk exclusively to Coles, while also imposing a cap on the maximum volume of milk that could be produced.

Separately, the ACCC alleges that Brownes breached the Dairy Code by publishing two milk supply agreements that didn’t clearly specify the minimum prices that applied throughout the entire supply period and did not justify the reason for the minimum prices.

“Dairy farmers need clear accurate information about supply terms and prices when deciding who they will supply,” says ACCC Deputy Chair Mick Keogh.

“Terms that limit a farmer’s ability to supply, or documents that don’t properly set out minimum prices and the reasons for them, undermine the transparency the Dairy Code is designed to deliver.

“Volume caps in exclusive milk supply agreements are particularly concerning. They can cause significant harm to farmers by limiting milk production while also restricting their ability to supply multiple processors.”.

As part of its compliance and enforcement program, the ACCC engaged with three other dairy processors about minor alleged breaches of the Dairy Code. Those traders have taken measures to improve their compliance after the ACCC issued warnings to them.

“Our Dairy Code enforcement approach is to be proportionate and fair, which means taking stronger enforcement action for more serious breaches or repeated non-compliance,” says Mr Keogh.

The ACCC encourages all dairy processors to review their obligations under the Code and ensure that all required documents are compliant and published by the 1 June 2026 deadline imposed by the Code.