Dairy code review announced by Federal Government

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Submissions will be invited from farmers and industry leaders in the first review of the Dairy Code of Conduct.

The Federal Government has announced the review will be open from July 5 to August 15.

The government is also establishing a dairy code review reference group to support the first review.

Federal Agriculture Minister David Littleproud said the government would seek input from the dairy reference group, dairy farmers, processors and industry groups.

“The Dairy Code of Conduct was introduced on January 1, 2020 to even out market imbalances in the dairy industry,” Mr Littleproud said.

“It was a recommendation of the ACCC’s 2018 inquiry into the dairy industry, which found significant imbalances in bargaining power at each level of the dairy supply chain.

“This review is critical to assessing whether it is operating as intended and delivering the outcomes the dairy industry needs.

“I’m pleased to say that initial feedback on the code has been quite positive but we are open to hearing how it could be improved.

“We will listen closely to industry’s experiences and hear how the code’s requirements are being met, the impact on business relationships and outcomes.”

Further information on the review will be available on the Department of Agriculture, Water and Environment’s website in coming weeks.

In December 2020, the Australian Competition and Consumer Commission published initial observations on the operation of the code, which indicated it was making a difference to market transparency in the industry.

A review of the code must be undertaken during 2021, with the next review due in 2023.