NSW Farmers’ Association has welcomed the launch of the mandatory dairy industry code by Minister for Agriculture Bridget McKenzie.
NSW Farmers’ Dairy Committee Chair Colin Thompson said the mandatory code is crucial for enhancing dairy farmers’ bargaining power with processors.
“Farmers have insufficient power in their dealings with processors resulting in unfair contractual terms being imposed,” Mr Thompson said.
“This Code will start the process of rebalancing the scales and will provide a level of transparency for all farmers.”
“The Code prohibits many unfair contract elements that farmers have had to endure over many years.”
“The commitment to outlaw retrospective step downs and greatly restrict unilateral variations is a huge positive for farmers.”
“It’s also promising that penalties for breach of the code may be determined based on respective size of the processor or farm.”
NSW Farmers continues to call for action on the market power of the retailer sector, as it is directly damaging the profitability of farmers.
“The irrational pricing of retailers has reduced the money available in the supply chain. It has placed pressure throughout the chain and this results in farmers’ milk price being squeezed.”
“The sale of discounted dairy products must end. Consumers need to demand that retailers support farmers by selling dairy products for a fair price.”
“We are calling for the price of dairy products to be lifted. We are pushing for a minimum price of $1.50 per litre for fresh milk and $9.00 per kilogram for cheese.”
The mandatory dairy code of conduct will require farmers and processors to be compliant by 12 months from the implementation date. Compliance with the code will be overseen by the Australian Competition and Consumer Commission.
