The Dairy Industry Code of Conduct
The Dairy Industry Code of Conduct (also known as the Mandatory Code, or the Code) aims to improve the clarity and transparency of trading arrangements between dairy farmers and processors.
Under the Code, which came into effect on 1 January 2020, dairy farmers and processors are given specific protections and obligations.
All Milk Supply Agreements (MSAs) between suppliers and processors that are created, varied or renewed this year are subject to the Code. All MSAs, no matter when they were entered into, must be compliant with the Code from 1 January 2021.
The Australian Competition and Consumer Commission (ACCC) is responsible for enforcement of the Code and investigates alleged breaches.
The ACCC has developed a fact sheet intended to help dairy farmers understand their rights and obligations under the Code.
Click here to find the ACCC factsheet: ‘What the dairy code means for farmers’.
Milk Supply Agreements
Dairy Australia is developing resources to support dairy farmers in their interpretation and decision making around new Milk Supply Agreements (MSAs).
Under the Dairy Industry Code of Conduct, there are specific requirements for all MSAs. We are developing a Milk Supply Agreement Checklist that outlines these requirements. The checklist will guide farmers through important legal and operational considerations for their farm business when they are reviewing contracts.
To support the checklist, Dairy Australia is also developing a Guide to Effective Conversations, designed to assist farmers in their discussions and negotiations with processors.
These resources will be available from 1 June 2020, to coincide with the deadline for processors to publish their standard form Milk Supply Agreements for the coming financial year.
Check back on Monday 1 June for more details.
This project is supported by the Department of Agriculture, through funding from the Australian Government.