Dairy farmers applaud grocery code report

An interim report into the Food and Grocery Code has been welcomed by eastAUSmilk. Photo: AAP

EastAUSmilk has praised the interim review of Australia’s Food and Grocery Code.

Joe Bradley, chair of the eastAUSmilk board, said the review adopted the two key proposals from eastAUSmilk — that the code must be mandatory, and that it must address the issue of supermarket retaliation against suppliers.

“Without these two changes, the Food and Grocery Code would have remained ineffective and ignored,” he said.

“It is great to see Craig Emerson has moved so quickly to make substantive findings and recommendations.

“Now we call on the government to move with great speed to implement his recommendations.

“There is no need to wait for his final report, before getting to work on implementing his most important recommendations.”

The interim report was released on Monday, April 8 and Dr Emerson’s final recommendations will be handed down by the end of June.

Mr Bradley said while the Food and Grocery Code impacted dairy farmers mostly indirectly, it is very much in the interests of dairy farmers across Australia that the relationship between supermarkets and their suppliers is cleaned up.

“It is also very much in the interests of the whole Australian community that the big supermarkets, who have such a powerful influence on everyone’s cost of living, are properly scrutinised and regulated.

“EastAUSmilk sees this interim report as a very solid and timely step towards that scrutiny and regulation — but only one step. Big supermarket margins now have to be examined closely.”

EastAUSmilk represents dairy farmers in NSW and Queensland.