On 25 June 2014, the ACCC authorised poultry growers who are members of the NSW Farmers’ Association to collectively negotiate terms and conditions of contracts with relevant processors.
There are currently five operating chicken and turkey processors in New South Wales, including, Inghams Enterprises, Baiada Poultry, Red Lea Chickens, Cordina Chicken Farms, Summertime Chicken and Pepe’s Ducks.
Although chicken and turkey growers can currently collectively bargain with processors under existing New South Wales legislation, this authorisation allows them to continue to do so if the legislation is revoked. The authorisation also extends to duck growers (who are not currently covered by legislation).
The ACCC was of the view that collective bargaining enables poultry growers to share transaction costs, which can improve their input into contracts and that this could lead to contracts which better reflect the circumstances of growers and processors.
Authorisation has been granted for ten years.