$22K fine sends ‘strong message’ of support for WA farmers

Federal Agriculture Minister David Littleproud has weighed in on the fine handed to a South West dairy processor for allegedly not complying with the national code, saying it sends a “strong message” of support for farmers.

Last week the Australian Competition and Consumer Commission confirmed Brownes Dairy had paid two infringement notices totalling $22,200.

The notices were issued after the Brunswick-based processor had published two milk supply agreements last June on its website which allegedly did not comply with the Dairy Code of Conduct.

Mr Littleproud said the penalty sent a strong message that the Code is working to support farmers and build a fairer dairy supply chain.

“It just shows that the Dairy Industry Code is delivering for farmers and penalties will be enforced,” he said.

“The Australian Government is committed to ensuring a fairer go for dairy businesses and keeping families on the farm while creating a stronger business environment with better regulation, healthier market competition, and more competitive supply chains.

“The mandatory Dairy Industry Code of Conduct is a key part of this.”

Mr Littleproud said the code — which was introduced last year after years of industry lobbying — introduced clarity on how farmers and processors were to conduct their business relationships.

“It introduced minimum standards of business conduct to help rebalance bargaining power and improve transparency in transactions,” he said.

“It includes the requirement for processors to publicly release standard forms of milk supply agreements each year.

“This requirement provides dairy processors with the opportunity to show they are offering a fair milk price and contracts that meet the requirements of the code, including by offering non-exclusive contracts.

“The government is working hard to ensure dairy farmers get the best price for their milk and the mandatory code is just one way we are supporting our dairy industry.”