Dairy code of conduct

South West dairy farmers should benefit from the newly-established Australian dairy industry code of conduct.

The code will come into effect in January.

The code contains nine acts including prohibiting processors from witholding loyalty payments if a farmer switches processors and the introduction of a dispute resolution process.

It also includes avoiding one-sided changes to agreements and preventing retrospective price step downs.

Forrest MHR Nola Marino said the aim of the code was to improve contractual agreements between dairy farmers and processors.

The code is an outcome of the 2018 ACCC report into the dairy industry following consultation with the dairy industry.

“I expect dairy processors to keep the exposure draft in mind when developing new contracts with dairy farmers in the coming months,” Agriculture Minister Bridget McKenzie said.

“Consultation on the exposure draft will be open for four weeks and, from January 2020, the industry will be bound by the new code.”