News & Insights

The agricultural sector has been a recognised focus of the ACCC since 2015, when it created the Agriculture Unit to examine competition and unfair trading issues in agricultural supply chains.

In the past two years, the ACCC has sought to gain a better understanding of how the agricultural machinery industry operates, and in particular, the challenges faced by consumers in the ‘after-sales markets’.

Notably, in 2018, the ACCC held consultations with stakeholders about their experiences of purchasing and repairing agricultural machinery. As agricultural machinery is a significant capital item, which involves considerable upfront and ongoing costs, it is important that purchasers have access to a competitive market and are aware of their rights.

2020 discussion paper and consultation

More recently, in February 2020, the ACCC released the “Agricultural machinery: After-sales markets” discussion paper that identifies issues which may be harmful to competition and to purchasers of agricultural machinery. These issues include:

• limited access to independent agricultural machinery repairs;
• a lack of recourse for farmers in the event of a problem with their machinery;
• limited access to repairs as a result of agreements between manufacturers and dealers; and
• privacy and competition concerns as a result of data ownership and management.

The ACCC is seeking more information and feedback on the above issues, and is asking for submissions from farmers, dealers, repairers, industry bodies, manufacturers and other interested stakeholders.

how you can have your say

The due date for submissions in response to the discussion paper has been extended to Sunday 31 May 2020. Stakeholders are encouraged to make submissions that deal with the issues raised in the discussion paper, or other issues relevant to their particular experience with the agricultural machinery sector.

Alternatively (or in addition to making a submission), farmers or other purchasers of agricultural machinery are invited by the ACCC to partake in a survey. The survey is designed to collect feedback about experiences relating to purchasing, servicing and repairing agricultural machinery.  The due date for responses to the survey has been extended to Wednesday 22 April 2020.

For further information or assistance, please contact Kelly Dickson.

The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.