According to the lawsuit, the core of the dispute centers on Fonterra’s alleged attempts to lure farmers away with promises of a higher milk price. ACM claims that in June, a Fonterra representative met with a family farm in Bamawm, generating a financial report that showed the potential gains under Fonterra’s pricing. ACM states this led the farmer to threaten to break their contract unless ACM matched the offer. A similar incident allegedly occurred with a Cohuna supplier in May, underscoring a pattern of behavior from the Fonterra officer.

Fonterra, for its part, has strongly denied all allegations. The company maintains that its staff did not interfere with any contracts and that the application for an injunction is unwarranted. Despite ACM writing to Fonterra to demand that the alleged poaching cease, Fonterra reportedly refused to provide any undertakings, standing by its position of innocence. This firm denial sets the stage for a contentious legal battle, with a hearing date for the injunction application yet to be set.

For the Australian dairy farmers and suppliers in the region, this lawsuit creates a period of uncertainty. The legal battle between two major milk processors demonstrates the fiercely competitive nature of the market for raw milk. As processors vie for supply, the outcomes of such disputes can have a direct impact on farm-gate prices and the stability of supply contracts. This development is a key piece of data journalism for farmers needing to navigate their supply options.