Mandatory dairy code a must 

NSW Farmers’ Association has welcomed the commitment from the Federal Government to support a mandatory code for the dairy industry. 

NSW Farmers’ Dairy Committee Chair Erika Chesworth said the mandatory code is crucial for enhancing dairy farmers bargaining power with processors. 

“Farmers do not have sufficient power in their dealings with processors, resulting in unfair contractual terms being imposed, ” Ms Chesworth said

“A mandatory code is the most effective way to address these power imbalances, and produce long term structural change to enhance competition for farmers’ milk.” 

“The mandatory code will provide all farmers with a set of minimum standards with legal protection. It will just be an initial step and it will not be a silver bullet for dairy farmers, but it will give farmers a base level of protection.” 

Minister for Agriculture David Littleproud announced the content of the mandatory code will include enhancing transparency and prohibiting unfair contract elements.

“The commitment to outlaw two-tier milk pricing is a huge positive for farmers.  This pricing has had a devastating impact on dairy farmers in NSW and it will now never return”

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 the result is farmers’ milk price being squeezed”

“The sale of $1 litre milk must end. Coles and Aldi must recognise their role and start supporting farmers by selling milk for a fair price”.

Date: Friday 15 March 2019
Media Contact:   Michael Burt  | 0428 228 988