According to the lawsuit, the core of the dispute centers on Fonterra’s alleged attempts to lure farmers with the promise of a higher milk price. ACM claims that in at least two separate instances—one with a family farm in Bamawm and another with a supplier in Cohuna—a Fonterra representative presented farmers with financial reports detailing potential gains under Fonterra’s pricing. This allegedly prompted the farmers to threaten to terminate their contracts with ACM unless the company matched the offer.

In response to the lawsuit, Fonterra 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’s demands for the alleged poaching to cease, Fonterra has reportedly refused to provide any undertakings, setting the stage for a contentious legal battle that will be closely watched by the international dairy community.

This legal case provides a key piece of data journalism for the industry, offering a rare glimpse into the aggressive strategies sometimes used to secure milk supply in a tight market. The outcome could have a direct impact on farm-gate prices and the stability of supply contracts for Australian dairy farmers. It also brings into focus the broader debate around ethical business practices and the need for clear legal precedents in a highly competitive global food sector.