Call to increase dairy code transparency

Mar 20, 2024

The VFF UDV is stepping up calls for increased transparency as the ACCC’s Dairy Code of Conduct review continues.

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VFF UDV president Bernie Free said despite a fairly positive overall view of the code, his organisation was seeking a number of changes as outlined in a recent submission to the review.

“The Dairy Industry Code review has had an overwhelmingly positive impact for Victorian dairy farmers, but strengthening the code in relation to dispute resolution and increasing transparency in milk supply agreements will assist farmers in ensuring long term profitability,” Mr Free said.

“We’re calling for the most current version of a Milk Supply Agreement to be published with a separate document recording changes since previous versions to simplify the documentation.

“If we could get the costs of dispute resolution to be based on pro-rata turnover and that producers be permitted to engage in multi-party dispute resolution, but not processors, it would be a fantastic outcome for producers.”

Mr Free said overall, the code has been a great success since its inception, and the tweaks suggested aim to further strengthen it.

“The Code of Conduct has worked well to correct some market failures and to promote improved competition for milk at the farm gate.

“There’s no doubt it’s had a very positive impact for dairy farmers throughout Victoria.”

By McPherson Media Group