ACM management initiated injunction proceedings this month, accusing a Fonterra Australia employee of engaging directly with at least two farmers who were under existing agreements with the Kyabram-based ACM. Specifically, ACM alleges that in March 2024, a Fonterra employee approached a Victorian dairy farmer, urging them to break a contract that still had 12 months remaining, demonstrating an alleged disregard for established contractual obligations.

Further complicating the matter, ACM claims that the Fonterra employee conducted a comparative analysis of ACM’s contract versus Fonterra’s proposed offer. This action is particularly contentious as ACM’s farmer contracts contain confidentiality clauses explicitly stipulating that the milk price paid by ACM must remain secret, raising questions about alleged breaches of confidentiality alongside contract interference.

ACM Chief Executive Jason Limbrick confirmed the legal action, stating that “relationships with the farmers who choose to supply us their milk are at the core of our business” and that their priority is to protect these relationships. Limbrick added that ACM resorted to court action only after Fonterra “refused to provide undertakings that might have allayed ACM’s concerns,” indicating a breakdown in direct resolution attempts. Fonterra, however, denies the allegations, stating they “did not interfere or seek to interfere with any contracts as claimed.”