ACM imposes order subject to periodic penalty payments on Lactalis Leerdammer

The Netherlands Authority for Consumers and Markets (ACM) imposes an order subject to periodic penalty payments on cheese producer Royal Lactalis Leerdammer (Lactalis Leerdammer) for violating the Dutch Act regarding unfair commercial practices in the agricultural and food supply chain (the Dutch Act, in Dutch: Wet oneerlijke handelspraktijken landbouw en voedselvoorzieningsketen, or Wet OHP Landbouw).

Under this act, Lactalis Leerdammer cannot unilaterally change the milk price. A supplier association of dairy farmers has submitted a complaint to ACM about this practice. ACM orders Lactalis Leerdammer to change its supply conditions regarding the milk price, for example by including a transparent and objective pricing system. Lactalis Leerdammer will subsequently have to submit the amended conditions to the milk suppliers for approval so that negotiations on these conditions can still be held.

ACM orders Lactalis Leerdammer to bring the supply agreement in line with the Dutch Act no later than three months after the publication of this decision.