Australian Dairy Farmers (ADF) has welcomed a report from the Federal Government’s agriculture department, finding – for the second time – that the Dairy Code of Conduct continues to operate as intended.
The second review into the Code, completed by the Department of Agriculture, Fisheries and Forestry (DAFF), shows it remains a critical safeguard for fairness, transparency and confidence in dairy contracting.
The report reinforces ADF’s long-held position that the Code is necessary to address structural power imbalances between dairy farmers and processors, and that its core settings remain fit for purpose.
ADF President Ben Bennett said the outcome reflects the strength and consistency of farmer advocacy throughout the review process.
“It confirms the Dairy Code of Conduct is doing its job, and that is in no small part due to farmers standing firm on what matters,” Mr Bennett said.
“ADF was clear and consistent, and those core protections have been upheld.”
ADF welcomed the retention of key farmer safeguards, including the permanent ban on retrospective price step-downs, the ongoing requirement for minimum prices in milk supply agreements, and the confirmation that the Code should remain in place rather than be repealed or allowed to lapse.
Changes that could allow dairy farmers to work together in mediating or arbitrating disputes are another positive outcome, reflecting ADF’s advocacy for more practical and accessible enforcement tools that allow farmers facing common issues to act collectively.
“These outcomes matter because they protect confidence at farm level and support investment, and planning,” Mr Bennett said.
However, Mr Bennett said ADF was concerned the report could lead to greater processor flexibility, despite there being no evidence the current rules are failing.
“In particular, proposed changes around cooling-off periods, exceptional circumstances and contract administration have been put on the table, despite there being no indication from the ACCC the current situation poses a problem,” Mr Bennett said.
ADF also noted that the review acknowledges farmer confidence remains fragile and that power imbalances persist in parts of the supply chain, particularly in regions with limited processor competition.
Mr Bennett said ADF would continue to closely monitor and ensure any future changes do not have adverse effects.
“ADF’s position remains clear – the Code should always be protected and strengthened, not diluted.”
ADF will continue to work constructively with Government and regulators to ensure any amendments to the Code uphold the original purpose and maintain confidence across the dairy supply chain.