There was no provision for such herd possession agreements and what the parties agreed and signed was a contract that could only be amended by mutual agreement. Withholding money before conciliation, which resolved most of the sharing disputes, caused a serious financial disadvantage to a Sharemilker. The couple, who had a three-year sharemilking contract with Burt`s company, are also urging Fonterra to review its milk payment rules. Here are some of the issues that need to be addressed when buying and selling a dairy farm that supplies Fonterra, either before signing a sales contract or under a condition of due diligence after signing. Legislation on non-grassy property sharing contracts protected Sharemilker and, in some respects, was similar to labor law. It also suggests that Federated Farmers could ask Fonterra to refuse to redirect the Sharemilkers` income to a shareholder without making a written statement that there is a dispute, that conciliation has failed, and that the request for withholding payment was valid. “Withholding income from compassionate milk by a farm owner is a powerful tool that does not easily fit the concept of party equality.” Lump sum damages cannot be avoided by simply sharing 100% before the sale of a dairy farm in which the buyer wishes to supply another dairy processor. .
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