Processors want the dairy code of practice watered down

Farmer advocacy groups, including eastAUSmilk and Australian Dairy Farmers, were key advocates for introducing the code whereas processing representatives tried to block the introduction of the code.

A special thanks to Craig Hough from Australian Dairy Farmers who was key to drafting the code. Craig finished his time at Australian Dairy Farmers last week and his knowledge, drive for change and enthusiasm will be sorely missed.

Some processors are now complaining that the code does not give them enough flexibility when competition between processors drives up the price to farmers. These processors and their representatives want the code watered down so processors can reduce prices to farmers like the bad old days before the code.

This will allow processing companies worth billions of dollars to once again dictate to the small family farms that supply them. Their attitude is not surprising since processors were opposed to the code and have never wanted farmers to have any more bargaining power.

Some processors have competed well in the market to attract additional milk supply. The code has allowed this to happen much more readily than it was previously. Are these processors, who want to compete for and attract milk, also complaining that the code needs to be watered down? I would think not.

I would note that processors have identified the boundaries of the code and found out what they can and can't do. In several areas, this means the intent of the code is not translated into practice. This appears a more significant issue to me than complaints by processors that small family businesses now have too much power over multi billion dollar companies.