PAC Report - ACCC put their foot down

For all Farm Inputs, reoccurring products, and New Equipment, check out the PAC (Prime Ag Centre) page here or call Ellen on 0418 137 224. If you are a Supplier, Manufacturer or Wholesaler and you are looking for other sales avenues, give us a call. We have over 67,000 members.

By Ellen Garland.

Did you see the most recent ACCC ruling on unfair Fertiliser Contracts?

The most relevant to today's current Urea supply issue is the term that gives the "supplier the right to unilaterally vary the quantity to be delivered to the buyer or terminate the agreement if the supplier believed it would not be able to supply the goods."

This term is troubling for so many reasons, mostly surrounding pricing and supply, as an example, if the price contracted is less than market value when the product arrives, what is stopping the supplier from using the above term to sell a portion of the contracted tonnes to someone else at an inflated price? The number of times I've heard someone say, "oh, that boats been sold three times over," in the last couple of months has been frustrating, to say the least.

The good news is, in November 2023 these unfair terms will be changed, and heavy penalties will apply if the terms of the contract aren't met or suppliers try to adjust them mid-contract. This will create far more stability in the market and allow for better forward planning and budgeting for you, the grower, great result.