Dairy code has changed industry culture: Keogh

Dairy code has changed industry culture: Keogh

Dairy
Photo: SHUTTERSTOCK

Photo: SHUTTERSTOCK

Aa

THE Dairy Industry Code of Conduct has brought about a "significant culture change" within the dairy sector, ACCC deputy chair Mick Keogh says.

Aa

THE Dairy Industry Code of Conduct has brought about a "significant culture change" within the dairy sector and helped increase competition at the farmgate, according to Australian Competition & Consumer Commission deputy chair Mick Keogh.

The code, which was introduced in January 2020 as a key recommendation from the ACCC's 2018 dairy enquiry, is under review, after the public submission period closed on August 29.

Speaking at a Rural Media & Communicators SA/NT breakfast, Mr Keogh conceded the code wasn't perfect, but said the ACCC was still pleased with how it was operating.

He said a lot more dairyfarmers, particularly in the southern regions of Australia, had a better understanding of their milk supply agreements and had written agreements, rather than handshake agreements.

Related reading:SA trial to test milk traceability system

Mr Keogh said the "manifestly unfair" nature of previous milk supply contracts had been highlighted by retrospective price step-downs implemented by Murray Goulburn and Fonterra in 2016, which led the industry to call for change.

"The mandatory code focuses on a requirement to ensure those milk supply agreements are fair and available to farmers at least a month prior to them needing to sign up for the new milk year," he said.

"Virtually all milk supply agreements now come out on June 1 with a price, giving farmers an opportunity to compare offers and make the best decision.

"It's not perfect, but I think it has been very successful in bringing a significant culture change through the dairy sector."

Want to read more stories like this?

Sign up below to receive our e-newsletter delivered fresh to your email in-box twice a week.

The story Dairy code has changed industry culture: Keogh first appeared on Stock Journal.

Aa

From the front page

Sponsored by