The legal conflict centers on allegations that Fonterra breached the milk supply agreement with the Platts, who operate a 2,500-head dairy operation on Thomson River frontage property and have notified the cooperative of their intention to immediately cease supply. Despite Fonterra’s offers for mediation being declined by the farming couple, the processor maintains it strongly refutes any suggestion of contractual breach and characterizes the legal action as necessary to secure continuity of milk supply from the substantial dairy operation.

Justice Attiwill has proposed judicial mediation before Associate Justice Catherine Gobbo scheduled for October 10 in the Supreme Court of Victoria, with a potential trial date set for early December if the parties cannot resolve their differences through alternative dispute resolution. The case falls under the Dairy Code of Conduct framework, which governs contractual relationships between processors and farmers, establishing regulatory oversight for milk supply agreements and dispute resolution procedures across Australia’s dairy sector.

This legal action represents the second concurrent court case involving Fonterra’s Australian operations, as the processor simultaneously faces separate allegations that one of its staff members attempted to entice Australian Consolidated Milk suppliers to break their existing contracts. The multiple legal challenges highlight increasing friction within Australia’s dairy supply chain as processors compete aggressively for milk volumes amid margin pressures and evolving market dynamics that affect both farmer returns and processing economics.