Dairy leaders have welcomed recognition from Federal Agriculture Minister Murray Watt of the importance of the dairy industry’s contribution to Australia.
Speaking at the government-hosted National Dairy Symposium in Melbourne on March 22, Senator Watt highlighted the government’s commitment to supporting the $17 billion Australian dairy sector.
"Dairy is Australia's third largest agricultural industry, and we will continue to do everything we can to support Australian dairy producers and processors, even when that means making tough decisions," he said.
Senator Watt reiterated the government’s decision to reject the trade deal with the European Union last year.
Negotiations for a free trade deal between Australia and the EU, worth about $100 billion, stalled in October, 2023.
The Australian dairy industry backed the decision to walk away from the deal.
The symposium, which was a pledge made by the government at the last federal election, tackled issues facing the industry, including productivity and growth, and sustainability and climate.
Australian Dairy Industry Council chair Ben Bennett said the industry was “heartened’ by the Minister’s support.
“Dairy is a product of choice for Australian consumers, and indeed for many international markets,” Mr Bennett said.
“Every one of the industry’s current challenges presents an opportunity and on Friday, our industry made an important step to working together to drive positive change.
“It is now important that government and industry chart a path forward that ensures the resilience, viability and prosperity of Australian dairy for generations to come.”
ADIC deputy chair John Williams said the minister’s announcement to commit funds to Dairy Australia to conduct workshops to explore the productivity challenge was fantastic news for an industry that is crucial to the economy and regional communities.
“We truly believe there are strong opportunities for profitable growth in the Australian dairy processing sector, with a stable domestic market and growing global demand for high quality dairy products,” Mr Williams said.
Senator Watt also said the Dairy Code of Conduct would need a review in the near future and invited those working in dairy to contribute to a current discussion paper.
The voluntary Dairy Code of Conduct came into effect on January 1, 2020 to address transparency of milk pricing, bargaining power and sharing of price risk across the supply chain.
Senator Watt said the code had changed the way the dairy industry operated, and he announced at the symposium that consultation for a second review will start in September.
“The code was first reviewed in 2021 and found to be operating as intended,” he said.
“It’s put trust back into the industry and helped strengthen the relationships between producers and processors.”
More information on the discussion paper can be found at: https://haveyoursay.agriculture.gov.au/industry-comments-on-the-operation-of-the-dairy-industry-code