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Statement on dairy industry re-regulation

15 October 2019

National Farmers' Federation President Fiona Simson said recognition that dairy farmers were under pressure was welcomed.

"Consecutive tough seasons and resulting sky-rocketing water and grain prices are further eroding dairy farmers' already small profit margins," Ms Simson said.

However, Ms Simson said the NFF did not support calls for market re-regulation

"While domestic milk consumption is large, the export of milk products is significant. Australia's dairy farmers compete in a highly sensitive global market.

"Market intervention and regulation could potentially undermine global competitiveness."

In March, the NFF welcomed the Government's commitment to pursuing a mandatory code of conduct to level the playing field for farmers when dealing with the might and power of processors.

Developed through comprehensive industry consultation, the Code outlines specific rules of engagement between farmers and processors to ensure farmers are not at an unfair disadvantage.

Importantly the Code will not regulate farm gate prices or set the price that dairy processors can charge for their product.

"Dairy farmers are in challenging times," Ms Simson said.

"A sophisticated, informed, progressive approach to easing these challenges is needed. The introduction of a mandatory Code of Conduct is a priority.

"Former Victorian Premier, John Brumby is also leading the development of a National Dairy Plan."

"We look forward to continuing to work with industry on these initiatives and with Government to chart a brighter future for our dairy sector and it's contribution to agriculture's $100 billion-by-2030 vision."

Media Enquiries: Laureta Wallace
P 0408 448 250
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