On May 25 the Australian Competition and Consumer Commission announced several of Australia’s largest poultry processors had pledged to improve their current contracts with chicken growers.
This included clarifying the circumstances in which a processor may require a grower to upgrade their farm and when processors can make changes to their grower manuals.
In addition, the new-and-improved contract terms will lengthen notice periods for termination and make it clear when processors can impose additional costs on growers.
In the chicken meat industry processors supply the chicks, feed and medications to the growers, and retains ownership of the birds at all times.
Growers generally provide the land, equipment, labour and utilities.
NSW Farmers Poultry Committee chair Peter Wojcicki said growers had been calling for a code of conduct because processors and supermarkets were dominating the supply chain.
“The poultry meat processing space in Australia is alarmingly concentrated, with just two companies responsible for processing 70 per cent of the nation’s chicken,” Mr Wojcicki said.
“Consumers might not be aware of the situation because of the number of brands on the market, but many of them are actually owned by the same company.
“With so little competition in the processing space, these big companies are basically able to offer contracts on a take it or leave it basis.”
While the ACCC investigation has been running, the National Famers’ Federation, VFF, Australian Chicken Growers Council and NSW Farmers have all joined forces to develop a Code of Conduct for the industry.
Contracts between processors and growers specify the methods and equipment the grower must use to care for the birds.
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