The legal action comes from a crisis in the dairy sector last year that led the milk processor to slash farm gate milk prices and force milk producers to pay back money received through supply contracts.

The decision left many farmers more than $100,000 in debt to Murray Goulburn. The ACCC will allege Murray Goulburn behaved unconscionably and misled farmers on the milk prices they could expect to receive.

Association Dairy Committee chair Erika Chesworth, said the announcement showed a commitment from the ACCC to investigate agricultural supply chain issues.

“This formal action shows that they are serious about holding companies and individuals to account over serious issues, such as unconscionable conduct, and reinforces the faith the dairy industry has in the ag commissioner and his team,” Chesworth said.

“For our farmers in the Murray Goulburn Southern Milk Region, the decision made by Murray Goulburn 12 months ago placed them under unprecedented pressure, and finally they are being held to account.

“The ACCC has been careful to note that it is not seeking a pecuniary policy from the cooperative itself, but rather from the key decision makers to ensure that farmers are not further impacted by this investigation into the alleged unconscionable conduct.”

The initiation of these legal proceedings comes as the ACCC conducts a broader inquiry into the competiveness and trading practices of the Australian dairy industry. 

Chesworth said this was a positive action from the ACCC and the committee looked forward to seeing the final report of the ACCC investigation, which was due in November.