Westland, which is owned by China, announced last month that it would stop collecting milk from farms owned by Gloriavale, following a labor court ruling over working conditions and alleged child labour.
Gloriavale’s Canaan Farming Dairy Ltd is one of Westland’s largest milk suppliers, sending approximately 900,000 kg of milk solids per season to the Hokitika dairy.
Based on next season’s average opening forecast of $9 per kilo, this would mean a $9 million loss of revenue per year for the Gloriavale Christian Community.
Canaan filed an injunction with the Supreme Court in Greymouth, asking the court to force the company to honor the terms of its milk collection contracts with Canaan, specifically to require it to continue collecting milk from its three farms.
A preliminary injunction was issued and both parties agreed that Westland would continue to collect Canaan’s milk until the court made a final ruling on the ban.
Today, the case is heard before the Supreme Court in Christchurch.
The court heard details of the 10-year contract, including the terms of delivery, which state that Canaan must deliver all milk produced on its dairy farms to Westland – and that Westland must accept and collect it.
However, contractual fine print states that Westland may refuse any milk if it has not been produced in accordance with legal requirements; or not in their “best interest” to accept it.
Canaan’s lawyer, Richard Raymond QC, said Westland’s decision to stop the milk collection came after the labor court ruling, but said Canaan had nothing to do with the proceedings and was not a party.
No children have worked on the farms since at least 2017, Raymond said, and all 15 Canaan workers were over the age of 18.
He said there is no evidence that Canaan acted other than in “complete accordance with its legal obligations” without pending investigation or concern from any government agency, including the Labor Inspectorate or WorkSafe.
Canaan has been an “exemplary” dairy farm, highly valued by Westland over a 30-year relationship, Raymond said.
The loss of a $9 million contract would be a “devastating, if not fatal, blow” to the community, the lawyer said.
And in addition to the many government reviews in recent times, and “relentless attacks” by media and leavers, Raymond said Gloriavale has spent more than $800,000 on reviews and reports on how the community and its businesses are run.
Raymond says that if Westland needs more proof that there are no children working on Canaan’s farms, they can “come and watch”, place drones or put an extra person in their milk truck.
“It’s an open book,” Raymond said, despite what people think about the place, calling it “the most researched place in New Zealand.”
Everyone can go there, the lawyer said, and Westland can “inspect to your heart’s content”, but there will be no children working there.
“It’s not submission, it’s not a position, it’s a fact,” Raymond said.
The hearing for Justice Jan-Marie Doogue is underway.
-By Kurt Bayer