Milk price certainty
Westland Milk has reaffirmed its commitment to pay farmer suppliers 10c above Fonterra farm gate milk price for the following two seasons.
The company's argument that Gloriavale-owned Canaan Farms employed children to do farm work and processing their milk affected relationships with major customers was thrown out by Justice Jan-Marie Doogue.
Justice Doogue granted Canaan Farms an injuction that requires Westland to continue picking milk from Bell Hill, Gloriavale and Glen Hopeful farms pending further order of the Court.
The injunction is subject to the condition that Canaan does not employ any minors or associate partners under the age of 18 on its farms.
A Westland spokesperson told Rural News that the Chinese-owned processor acknowledged the decision of the High Court.
"While our relationships with our suppliers are extremely important and based on mutual respect, our decision to suspend collection from Gloriavale was based on concerning employment and social issues identified by the courts," the spokesperson says.
In May, this year an Employment Court ruling observed that children working for Gloriavale's commercial entities were exploited and abused.
After reviewing the judgment Westland advised Canaan it had decided not to collect its milk supply.
Canaan argued that there was no legal or factual basis on which Westland could refuse to take delivery of Canaan's milk under the three contracts signed between the two parties.
In her judgment Justice Doogue noted that Westland claimed it had already lost a customer and suffered loss due to the presence of Canaan's milk in its products. Westland also anticipated losing further significant customers if it continued to purchase Canaan's milk.
"There is no evidence of actual loss," she says.
Justice Doogue says the milk supply deal between Westland and Canaan was a simple one: Westland agreed to take Canaan's milk supply for 10 years subject to the control of supply provision.
