Mandatory dairy code of conduct: ADPF and farmers disagree

The Australian Dairy Products Federation is calling for a second review of the dairy code. Here’s why.

Factories and farmers are at loggerheads over the future of Australia’s mandatory Dairy Code of Conduct, with a call for feedback from federal authorities.

The Australian Dairy Products Federation wants the federal government to expedite a second review of the code, which was set to be finished by December last year but has been delayed until 2026.

Last week, the Department of Agriculture, Fisheries and Forestry released a discussion paper on the code, which was introduced by the Morrison government in 2020 and has been supported by the Albanese government.

ADPF executive officer Janine Waller said there needed to be a “genuine, second review of

the dairy code”.

“While we welcome the release of the discussion paper … the second review is scheduled to be complete on or before the end of December 2026. A further three-year delay is unacceptable,” Ms Waller said.

“Dairy processors entered into the Dairy Code of Conduct in good faith. Legislation clearly outlined a second review would be complete on or before December 31, 2023.

“The first review was not comprehensive, considering minor issues only.”

Janine Waller, ADPF executive officer. Picture: Supplied

Ms Waller said the code in its existing form lacked regard for the commercial realities of the market.

“Australia’s dairy code of conduct requires dairy processors to announce farmgate milk

prices by June 1 each year, for the 13 months ahead,” she said.

“Unlike New Zealand and other competing nations, this requirement is unique to Australia.

“It is further exacerbating the risk and volatility processors need to navigate in a market

where the current cost of dairy products is not competitive with imports.”

EastAUSmilk chief executive Eric Danzi said: “There has been a lot of complaining by some processors and processor representatives about the dairy code and milk prices,” he said.

“They claim the dairy industry code is distorting the market and forcing farmgate prices too high. That’s simply not true.

“The code has corrected some of the market failures in the dairy industry and gone some way to ensuring farmgate prices reflect competition for milk.”