MAJOR Australian stockfeed miller Ridley Corporation Limited has settled a legal dispute out of court for $1.935 million with Baiada.
“A commercial settlement has been reached and executed with Baiada, whereby Baiada has immediately terminated its legal proceedings,” Ridley said in a statement today to the Australian Securities Exchange.
“Under the terms of the settlement agreement, Ridley will pay $1.935 million to Baiada in three instalments over a 12-month period.”
These will be accrued as an Adjusting Post Balance Date Event in the financial results for the half year ended 31 December 2019.
As part of the settlement, the current supply agreement between Ridley and Baiada has been amended to provide production efficiencies for Ridley with changes to the fee structure.
The term of the agreement has been extended for a further two years to expire on 30 November 2025.
“I am pleased to resolve this matter which has been a distraction for both parties,” Ridley managing director and chief executive officer Quinton Hildebrand said.
“The extension of the existing supply agreement with Baiada reflects the goodwill and ongoing commercial relationship between the parties.”
In August 2018, Ridley issued a statement saying Baiada had commenced proceedings against it in respect of stockfeed manufactured by Ridley for Baiada at its Wasleys feedmill in South Australia “between about 2014 until about October 2017”.
Baiada is a long-term and volume customer of Ridley, and one of Australia’s largest poultry producers through its Lilydale and Steggles brands.
Source: ASX, Ridley