The Australian Government has started its review process into the Dairy Industry 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.
“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.
“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.
“I am committed to ensuring a fairer go for dairy businesses and keeping families on the farm.
“Creating a stronger business environment, healthier market competition, and more competitive supply chains means fairer prices for farmers.”
Further information on the review will be available on the Department of Agriculture, Water and the Environment’s website in coming weeks.
- The establishment of a mandatory code was a recommendation of the ACCC’s 2018 Dairy Inquiry Final Report.
- This inquiry 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.
- In December 2020, the ACCC published initial observations on the operation of the Code which indicated that it was making a difference to market transparency in the industry.
- A review of the Code must be undertaken during 2021, with the next review due in 2023.
- The Code and its requirements can be viewed on the Federal Register of Legislation at https://www.legislation.gov.au/Details/F2019L01610