Why Dairy’s Future Hinges on Fair Regulation, Not Burden

Australian Dairy Farmers President Ben Bennett emphasizes that fair regulation is not a burden but a safeguard for the dairy industry. Concerns have risen over market concentration, highlighted by the proposed acquisition of Fonterra's Australian assets by Lactalis—a move opposed by the Australian Dairy Farmers organization due to fears it could reduce farmers' negotiating power and price competition.

The effectiveness of this regulation was proven when Lactalis was fined $950,000 for contract violations. This fine underscores the Code's role in maintaining fair practices and protecting farmers from processor dominance.

Bennett warns that further regulatory reinforcement is essential, especially with a shrinking milk pool and escalating market pressures. The piece argues that with stronger regulation, producers are more likely to invest in their farms, helping to drive production and innovation.

This narrative positions dairy farming as not merely an economic enterprise but a vital part of regional communities and the national economy, advocating for regulations as essential partners in fair and competitive markets.