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Schedule 1—Milk prices

Schedule 1 Milk prices

   

Competition and Consumer Act 2010

1  After Part VIIA

Insert:

Part VIIB Milk prices

 

95ZR   Definitions

                   In this Part:

base milk price for a dairy season for a specified area means the price determined for that area for that season by the Commission under subsection 95ZRB(1).

dairy products means processed and semi-processed products produced or derived from raw milk.

dairy season means the period that begins on 1 July in a year and ends on 30 June in the following year.

processor means a person that produces dairy products.

raw milk means the unpasteurised lacteal fluid product of a dairy cow.

specified area means an area specified in a determination made by the Commission under subsection 95ZRB(1).

95ZRA   Purpose of this Part

                   The purpose of this Part is to empower the Commission to determine a base milk price which will promote the long-term sustainability of the dairy industry in Australia.

95ZRB   Commission to determine base milk price

             (1)  For each dairy season, the Commission must, by legislative instrument, determine a price per kilogram of raw milk solids for that season for each area specified.

             (2)  The Commission must not exercise the power to make a determination under subsection (1) in such a way as to give a preference to one State or any part thereof within the meaning of section 99 of the Constitution.

95ZRC   Commission to consider certain matters in determining base milk price

                   In determining the base milk price for a dairy season, the matters the Commission must have regard to include the following:

                     (a)  the costs of the following:

                              (i)  collecting milk;

                             (ii)  processing milk;

                            (iii)  selling dairy products;

                     (b)  the long-term food security of Australia;

                     (c)  the commercial viability of dairy farms, including small farms, in all States and Territories;

                     (d)  the commercial viability of milk processors in all States and Territories.

95ZRD   Processors must not acquire milk for less than base price

                   A processor commits an offence if:

                     (a)  the processor enters into an agreement for the purchase of raw milk during a dairy season; and

                     (b)  the processor agrees to purchase the raw milk at a price (the agreed price ) per kilogram of raw milk solids; and

                     (c)  the raw milk was produced in a specified area; and

                     (d)  the agreed price is lower than the base milk price for the dairy season for that specified area.

Penalty:   2000 penalty unit s.

95ZRE   Constitutional limits on operation of this Part

                   This Part does not apply in relation to a processor unless:

                     (a)  the processor is a corporation; or

                     (b)  the body from whom the processor acquires raw milk is a corporation; or

                     (c)  the sale of raw milk or processing of raw milk into dairy products is (or would be) in the course of, or for the purposes of, constitutional trade or commerce (within the meaning of Part IIIA).