Australian dairy sector drafts dairy code

Australian dairy farmers can use the 'Dairy Code of Conduct' to consult in the negotiations on a fair price, Bridget McKenzie, Australia's agriculture minister, said. "A (mandatory) dairy code was one of the key recommendations of the Australian Competition and Consumer Commission (ACCC)." The organization noted last year that in many cases the contracts turned out to be too favorable for processors. "That is why it is important that there is finally agreement on what is and is not acceptable when drawing up contracts," said the minister.

'No solution for all problems'
In addition to assisting in negotiations, this Dairy Code of Conduct also establishes a dispute resolution process and extends the powers of the ACCC. "Although the dairy code is an important step forward in protecting the interests of dairy farming, it will not be a silver bullet for all the problems in the sector," said the minister. She mainly refers to the fact that dairy farmers today also struggle with persistent drought and higher costs for feed, electricity and water.

The Department of Agriculture recently announced that it would release $15 million for a package of support measures. Also, $6,9 million will be made available for grants in energy-efficient equipment to reduce energy costs. Finally, the Australian government is investing $5,6 million in additional funding for the ACCC's agricultural unit.

Enforcement by ACCC
The Ministry of Agriculture further reports in a press statement that the ACCC is responsible for enforcing the Dairy Code of Conduct. After a period of 12 months, an evaluation meeting will take place with the various parties.