ACCC Points on the Unfair Terms in the Supply Agreement with Grape Growers

  • Jun 19, 2020 AEST
  • Team Kalkine

After the concern raised by ACCC related to unfair terms and condition in the contract, many of the biggest winemakers in Australia have agreed to change their supply agreement with grape growers.

The ACCC communicated several large winemakers after its market study on wine grape, where it was pointed out that many of these winemakers are using standard form grape supply contracts where the conditions seemed unfair.

Now, several winemakers shall amend terms that permit them to make unilateral adjustments to supply agreements, involving one?sided termination rights. Most of them have even decided to attach conditions to their rights to enter growers’ vineyards for inspections, and to not stop growers from obtaining legal or financial assistance via confidentiality clauses in the deals.

However, ACCC is concerned about the lengthy payment period. Now, growers would have to wait for longer period to get their full payment which could even be up to 7 months.


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