The heads of Australia’s state dairy organisations have met with processors, to discuss ways of improving contractual arrangements between farmers and companies.
Australian Dairy Farmers (ADF) president David Basham said the meeting followed the August dairy symposium, where key industry stakeholders committed to working cooperatively to find solutions to issues faced by dairy farmers and the industry generally.
““It is apparent that greater transparency in the workings of individual contracts will be a major development in future,” Mr Basham said.
“It is important that we work together collaboratively to address both domestic and international challenges to the profitability of the industry”, Mr Basham said.
“By the ADF working with Australian Dairy Products Federation (ADPF) and its processor members, we will develop an industry code of practice to facilitate an improved business relationship between dairy farmers and processors, this will demonstrate to government our determination in solving our own problems.”
Mr Basham said the meeting highlighted the need to ease the pressure, placed on farmers, through supply contracts, reflecting in their ability to robustly plan and manage their farm finances.
Representatives of the Australian Competition and Consumer Commission (ACCC) were in attendance at the meeting and assisted in ensuring contracts complied with current anti-competitive regulation.
“ADF looks forward to implementing mutually beneficial contracts that share risk along the whole supply chain,” Mr Basham said.
“It is extremely important that we work with our constituents and the government to advocate on behalf of the whole industry, whilst at the same time being mindful of the specific needs of different industry players and even regional differences.”
