Dairy Code Review Moves Slowly Forward
Over objections from eastAUSmilk, the Commonwealth Government deferred the second review of the dairy industry code, so it is now to be completed by late 2026 instead of late 2023.
They’ve started that review with a discussion paper, asking for input to Department of Agriculture, Fisheries and Forestry by last week, on eight previously-identified issues.
EastAUSmilk already had a list of issues to raise, and most of them fitted within the eight listed by DAFF. However, we refuse to be limited by other people’s priorities, in the Dairy Code matters we raise on behalf of members. In the end we advanced 28 separate propositions to do with our list of issues and DAFF's eight.
It’s a bit hard to identify the ultimate origin of each of their eight issues, but some have clearly come from milk processors who want to weaken the Code.
The eastAUSmilk submission called for monitoring of margins through the whole supply chain, better prepared income estimates for farmers and reconciliation of those estimates against actual earnings, long term contracts to have no less than the year one price in subsequent years, minimising milk swaps between processors while they are used to keep prices low, a requirement for bargaining in good faith and full disclosure when settling milk supply agreements, and preserving the cooling off period. And many more!
Overall we were clear that there is still an imbalance between processors and farmers in the market, and that Code needs strengthening rather than weakening.
What happens now? DAFF say they will consider submissions, then consult with industry about the conclusions they reach. Once that’s done, they will collate stakeholder feedback, and make recommendations to the government. The outcomes of this process will guide the rest of the Code review, which will look at the whole the Code, not just these eight topics. The Minister for Agriculture, Fisheries and Forestry Murray Watt has committed to commencing that process by September this year.
By Mike Smith, eastAUSmilk government relations manager