Fair Go Dairy logo gets the go-ahead

The ACCC has authorised the Queensland Dairyfarmers' Organisation's Fair Go Dairy licensing scheme for five years.

It comes after years of work by the QDO on the project.

Under the scheme, QDO will grant processors a licence to use the Fair Go Dairy logo on qualifying dairy products.

The products must contain at least 80 per cent unprocessed milk that was produced by Queensland dairy cows and bought from a Queensland dairy farmer for a fair price.

In 2021/22 QDO has calculated a minimum price of 73.8 cents per litre processors have to pay farmers in order to participate in the scheme.

QDO state president Brian Tessmann said the organisation was optimistic about what the Fair Go Dairy logo could do for the Queensland dairy industry.

"Incremental changes to market share within the dairy cabinet will show those processors that still need convincing that this is what consumers want," he said.

"It's certainly what our farmers want and need if they are to keep going.

"I'd like to personally thank the Queensland Government and individuals who have supported us throughout the process."

Research conducted by the QDO over the past three years has indicated that consumers were looking for ways to support the Queensland dairy industry.

"We consider the 'Fair Go Dairy' scheme will likely result in a small degree of public benefit," ACCC Deputy Chair Mick Keogh said.

"The scheme is likely to give consumers more information about the price paid to the farmers supplying the milk for participating products.

"It may also be a useful tool for dairy processors to signal to consumers what they are paying Queensland farmers."

A number of smaller processors in Queensland are likely to qualify for the scheme and have expressed an interest in participating but so far no major milk processors in the state have put their hand up to take part.

QDO Darling Downs state councillor and Maleny Dairies supplier Brendan Hayden knows personally how much of a difference a fair price can make to dairy businesses.

"We were on our way out [of the industry] and only recently made the decision to start supplying to Maleny Dairies after over a decade supplying to Lactalis," he said.

" Knowing we would be guaranteed a fair and sustainable price for our milk with Maleny was a key factor in our decision to keep dairying.

"We are delighted."

The ACCC's authorisation is granted until 2026.