The Code of Practice for Contractual Agreements between Dairyfarmers and Processors in Australia was drawn up by the Australian Dairy Industry Council, with help from industry body Australian Dairy Farmers Limited, the Australian Dairy Products Federation and dairy processors who are signatories to the code.
The code was proposed late last year, in part in response to the controversial farmgate price cuts by major processors Murray Goulburn and Fonterra.
The code introduction describes adherence as voluntary but sets out “recommended minimum good practice in terms of milk supply contracts”.
During the Australian Competition & Consumer Commission inquiry into the dairy industry, agricultural commissioner Mick Keough said contract issues were a key concern for many dairyfarmers.
The code includes 11 elements for including transparency, clear pricing mechanisms and schedules, contract duration, loyalty payments, volume and exclusivity contracts and dispute resolution.
The code also proposes the completed code of practice be reviewed after on year and then subject to a review every year years or whenever a need arises.
Signatories to the code of practice include farmers body representatives SA Dairyfarmers’ Association, WA Farmers, Victorian Farmers Federation, NSW Farmers, Tasmanian Farmers and Graziers Association, Qld Dairyfarmers’ Organisation as well as processors Fonterra, Bega, Lion, Murray Goulburn, Warrnambool Cheese & Butter, Burra Foods Australia, Australian Consolidated Milk and Freedom Foods Group.
- Details: view the code at australiandairyfarmers.com.au/