New dairy regulation won’t be a milk price panacea | The Australian Dairyfarmer

Dairy farmers have been warned not to expect the industry’s proposed mandatory code of conduct to trigger any obvious lift in prices negotiated between milk processors and retailers.

After months of volatile debate, peak farmer body Australian Dairy Farmers has told the federal government it will offer unified support for a mandatory code for processor-farmer contracts as long as the rules provide for full industry coverage and improve bargaining power for milk producers.

The national body stressed a mandatory code must include an independent dispute resolution procedure.

The code must also outlaw retrospective milk price step downs, enforce contract and price transparency, and its effectiveness must be reviewed within three years.

However, farmer bargaining power under the new code was unlikely to have much influence on the way retailers set prices or what returns trickled down from supermarkets to dairy farmers.

ADF director, Simone Jolliffe, said farmers should not expect the code be a universal cure for milk payment discontent among farmers, and particularly not a sign of higher retail prices ahead.

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New dairy regulation won’t be a milk price panacea – Magazine – Industry News – General – The Australian Dairyfarmer.