Background

On 27 October 2016, the Treasurer, the Hon. Scott Morrison MP, issued a notice requiring the Australian Competition and Consumer Commission (ACCC) to hold an inquiry into the competitiveness of prices, trading practices and the supply chain in the Australian dairy industry.

Australian Dairy Farmers (ADF) developed and implemented a voluntary Code of Conduct, which was implemented on 1 July 2017 and scheduled for review after 12 months. The voluntary Code was intended as a first step to improving the balance of power through the dairy supply chain.

The ACCC delivered its final report on 30 April 2018. The report included 8 recommendations, including that the dairy industry transition to a mandatory Code of Conduct.

ADF, via the Australian Dairy Industry Council (ADIC), worked closely with the Australian Government during the development of the mandatory Code, including drafting draft clauses for the Government to consider as part of the process of establishing the new Code.

The Government conducted an extensive consultation period to receive industry feedback and input into the mandatory Code.

The mandatory Code was released publicly in December 2019, and came into force on 1 January 2020. All contracts, no matter when they were entered into, must be compliant with the Code from 1 January 2021.

Click here to read the ACCC Dairy Inquiry Final Report

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