Dairy Connect welcomes Government decision to introduce a dairy mandatory code

Dairy industry body Dairy Connect has welcomed the federal government’s announcement today that it will introduce a dairy mandatory code of conduct.

Dairy Connect has been an ongoing advocate for the introduction of a mandatory code as recommended by the ACCC, for its capacity to help restore balance, fairness and transparency in milk supply agreement negotiations between suppliers and processors.

Dairy Connect looks forward to working positively with the Government, ACCC and dairy industry bodies to ensure that the purpose and intent of the ACCC recommendations are implemented in full, where they are in the best interests of the dairy industry.

In response to statements that a mandatory code would inflict additional costs on the processors, Shaughn Morgan said that the ACCC Deputy Chair Mick Keogh had stated that whilst there would likely be some initial compliance costs for processors, in the medium to long term the additional costs would be minimal.

As for farmers, Mr Keogh indicated that there would be no additional costs arising from a mandatory code for farmers.

“The Australian Consumer and Competition Commission in its major dairy industry review determined that the national dairy industry would only achieve transparency, equity and sustainability with a mandatory code of conduct”, Mr Morgan said

Dairy Connect strongly supports this view