Murray Goulburn has agreed to settle a court case brought by the competition watchdog over allegations the dairy co-operative misled farmers about how much they would be paid for their milk.
Under the settlement, which is subject to Federal Court approval, the ACCC will seek a pecuniary penalty against former managing director Gary Helou but not against the company itself.
The Australian Competition and Consumer Commission will apply to the Federal Court seeking declarations that Murray Goulburn and Mr Helou contravened Australian Consumer Law in 2016 in relation to representations made regarding the FY16 farmgate milk price.
Murray Goulburn and Mr Helou will admit to the contraventions and agree to costs orders against them.
‘Murray Goulburn is pleased to have reached an agreement with the ACCC on this matter,’ Murray Goulburn chairman John Spark said.
Many suppliers quit the industry or switched to other processors after debt-laden Murray Goulburn in 2016 unexpectedly slashed the price it paid farmers for their milk.
Murray Goulburn’s value collapsed and Canadian dairy giant Saputo completed a $1.3 billion purchase of the co-operative in May.