Australia Confirms Dairy Code of Conduct as Effective Regulatory Tool

The latest review of Australia's Dairy Code of Conduct has affirmed its effectiveness in creating a balanced and transparent dairy industry. The second statutory review of the Competition and Consumer (Industry Codes—Dairy) Regulations 2019 demonstrates the code's crucial role in addressing historical power imbalances between dairy farmers and processors.

According to the report released by the Minister for Agriculture, Fisheries and Forestry, the Dairy Code mandates fair contract terms and transparent pricing, shifting the sector toward a more equitable bargaining environment. The review highlights a consensus within the industry that the Code remains 'fit for purpose' by improving the clarity of milk supply agreements through published standard forms.

The review also recommends specific technical improvements to streamline operations, which the government has accepted. These enhancements aim to clarify definitions and reduce administrative burdens while maintaining the Code's protective integrity. The Australian Competition and Consumer Commission (ACCC) will continue to oversee its enforcement.

Economic data since the Code's inception show a stabilization in the relationship between primary production and manufacturing. The Code's mandatory nature discourages unfair practices, providing a more predictable procurement landscape essential for long-term investment in dairy processing infrastructure.

Overall, the Australian government's commitment to this regulatory oversight marks a significant shift in agricultural policy, setting a benchmark for legislative intervention in the dairy industry.