Cobden farmer Craig Dwyer says new dairy code of conduct ends processor games

Western District farmer Craig Dwyer says the mandatory dairy code of conduct has streamlined the way processors reveal their opening prices.

Dairy farmer Craig Dwyer on his Cobden property. Photo: DANNIKA BONSER

WHEN the calendar flips over to June, dairy farmers have grown accustomed, if not a little frustrated, by the processor hokey pokey.

But not this month.

Dairy farmer Craig Dwyer said the mandatory code of conduct calling time on the tedious processor game has been refreshing. But the Cobden dairy farmer says it doesn’t necessarily mean they won’t return to the old dance in a new form.

“It provides some clarity, a minimum price you could call it,” Mr Dwyer said. “But when you’ve got Fonterra at $6.06 (per kilogram of milk solids) and Saputo and Bega at $6.40, I reckon there’ll be different processors playing catch-up between now and July. The same game we’ve seen in the past is still there, just in a different format.”

The third-generation farmer milks a 240-strong herd and supplies Australian Dairy Farmers Corporation.

ADFC offered two prices by the Monday deadline: $6.20/kgMS, applicable from July 1 to December 30; and $6.60/kgMS for the first half of 2021.

“The prices offered across the board on Monday were okay, better at least than what some analysts, including Rabobank, were forecasting,” Mr Dwyer said.

“But it’s never great to be told you’re getting a 10 per cent pay cut next month, which is what these prices effectively are for most dairy farmers.

“The prices for this financial year were good but they were effectively a form of catch-up for many farmers. Now we’ve got prices that are back to square one.”