Australian Consolidated Milk sues Fonterra over supplier poaching allegations

AUSTRALIA – Australian Consolidated Milk (ACM), a dairy manufacturer, has filed a lawsuit against its major competitor, Fonterra Australia, due to supplier poaching allegations.

ACM alleges that a Fonterra field officer has been actively encouraging its suppliers to breach their exclusive milk supply agreements.

This legal action, filed with the Supreme Court, seeks an injunction to prevent Fonterra from continuing to approach ACM suppliers and highlights the intense competition for raw milk in the Australian agribusiness sector.

According to the lawsuit, the core of the dispute centres on Fonterra’s alleged attempts to lure farmers away with promises of a higher milk price.

ACM claims that in June, a Fonterra representative met with a family farm in Bamawm, generating a financial report that showed the potential gains under Fonterra’s pricing. ACM states this led the farmer to threaten to break their contract unless ACM matched the offer.

In response to this, 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 writing to Fonterra to demand that the alleged poaching cease, Fonterra reportedly refused to provide any undertakings, standing by its position of innocence. This firm denial sets the stage for a contentious legal battle, with a hearing date for the injunction application yet to be set.

Yoplait sues Danone over Skyr product dispute in Ireland

The news comes after Yoplait Ireland filed a lawsuit against Danone in Ireland’s High Court, alleging that Danone imitated its Yoplait Skyr yogurt range. 

The legal action, lodged on April 11, claims Danone’s Light & Free Skyr products infringe on Yoplait’s brand identity, a practice known as “passing off.” 

This marks another chapter in the competitive dairy market, where both companies vie for dominance in the high-protein yogurt segment.

According to a statement from Yoplait Ireland’s managing director, Andrew Burke, the company is determined to protect its brand. 

“We have issued proceedings against Nutricia Ireland, a Danone subsidiary, to address the imitation of our Skyr yogurt range,” Burke said. 

Yoplait’s Skyr, launched in Ireland in September 2022, is marketed as a creamy, protein-rich product made using an authentic Icelandic recipe. 

The brand has gained traction with extensive marketing, securing shelf space in major Irish supermarkets.

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