Federal government begins review of Dairy Code of Conduct

The federal government has started its review process into the Dairy Industry Code of Conduct, with the public submission period open from 5 July 2021 to 15 August 2021.

The goverment is also establishing a Dairy Code Review Reference Group to support the first review of the Dairy Code of Conduct.

Minister for Agriculture, Drought and Emergency Management, David Littleproud, said the Australian Government will be seeking input from the dairy reference group, dairy farmers, processors, and industry groups.

“The Dairy Code of Conduct was introduced on 1 January 2020 to even out market imbalances in the dairy industry,” Minister Littleproud said.

“It was a recommendation of the ACCC’s 2018 inquiry into the dairy industry, which found significant imbalances in bargaining power at each level of the dairy supply chain,” the minister said.

Minister Littleproud continued that this review is critical to assessing whether it is operating as intended and delivering the outcomes the dairy industry needs.

“I’m pleased to say that initial feedback on the Code has been quite positive but we are open to hearing how it could be improved,” he said.

“We will listen closely to industry’s experiences and hear how the Code’s requirements are being met, the impact on business relationships, and outcomes,” he continued.

“I am committed to ensuring a fairer go for dairy businesses and keeping families on the farm.

According to Minister Littleproud, creating a stronger business environment, healthier market competition, and more competitive supply chains means fairer prices for farmers.

Related: $5 million in grants to support Australian dairy farmers

The establishment of a mandatory code was a recommendation of the ACCC’s 2018 Dairy Inquiry Final Report, which found significant imbalances in bargaining power at each level of the dairy supply chain.

It undertook extensive consultation with dairy farmers, processors and peak industry bodies.

The next review of the code will be due in 2023.

Source: Minister for Agriculture, Drought and Emergency Management media release