NSW poultry producers granted authorisation to collectively bargain

NSW poultry growers have been granted authorisation by the Australian Competition and Consumer Commission (ACCC) to collectively bargain with processors. The decision covers members of the NSW Farmers’ Association who grow chicken, turkey and duck meat.

Under the collective bargaining arrangements, poultry growers will be able to form common interest ‘grower groups’ to collectively bargain the terms and conditions of contracts with relevant poultry processors.

Existing NSW legislation permits chicken and turkey growers to collectively bargain with processors. The ACCC authorisation will allow them to continue the arrangements if the NSW legislation is removed. The authorisation will also allow duck producers not covered under legislation to begin collective bargaining.

“Collective bargaining allows poultry growers to share transaction costs, such as employing expert advisors, which can improve their input into contracts,” ACCC Deputy Chair Dr Michael Schaper said.

“The arrangement may lead to more efficient contracts which better reflect the circumstances of the growers and processor.”

The ACCC has granted authorisation for 10 years.

Currently there are five chicken and turkey processors in NSW - Inghams Enterprises, Baiada Poultry, Red Lea Chickens, Cordina Chicken Farms and Summertime Chicken. Pepe’s Ducks is the only duck processor in the state.