Australian Dairy Farmers (ADF) called an importa nt meeting on Tuesday 27th September with state dairy organisation presidents and processors to discuss ways of improving the contractual relationship between dairy farmers and processors.
The meeting follows on from the Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce’s August 2016 Dairy Symposium, where key industry stakeholders committed to working cooperatively to find solutions to issues faced by dairy farmers and the industry generally.
“It is important that we work together collaboratively to address both domestic and international challenges to the profitability of the industry”, said David Basham, ADF President.
He added, “by ADF working with ADPF and its processor members, we will develop an industry code of practice to facilitate an improved business relationship between dairy farmers and processors, this will demonstrate to government our determination in solving our own problems.”
The conversation highlighted the need by industry to ease the pressure placed on farmers through supply contracts reflecting in their ability to robustly plan and manage their farm finances.
Mr Basham continued, “It is apparent that greater transparency in the workings of individual contracts will be a major development in future contracts.”
The Australian Competition and Consumer Commission were in attendance at the meeting and provided assistance to ensure the industry when discussing contracts complied with current anti- competitive regulation.
“ADF looks forward to implementing mutually beneficial contracts that share risk along the whole supply chain”.
“It is extremely important that we work with our constituents and the government to advocate on behalf of the whole industry, whilst at the same time being mindful of the specific needs of different industry players and even regional differences”, said Mr Basham.
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