Australian Dairy Farmers (ADF) says this week’s ACCC action against Lactalis Australia should serve as a warning to the dairy industry, highlighting the importance of consumer trust and the growing pressures facing Australian dairy farmers.
Lactalis Australia has paid $59,400 in penalties after the ACCC issued three infringement notices alleging two milk products were marketed as “fresh” despite containing substantial amounts of powdered, reconstituted ingredients.
ADF President Ben Bennett said consumers deserve complete confidence in Australian dairy.
“Australian consumers have a right to know what they are buying, and Australian dairy farmers deserve a marketplace built on honesty and trust.
“While we welcome the ACCC’s action, let’s face it – a $59,400 penalty is nothing for one of the world’s largest dairy companies. It sends a message, but it needs to change behaviour.”
Mr Bennett said the case was about much more than product labelling.
“The broader concern is what this says about what happens when Australian dairy farming is continually squeezed.
“We continue to lose dairy farmers and local milk production. Western Australia now has fewer than 100 dairy farmers, and similar pressures are being felt in dairy regions across the country.”
He said when Australian milk production declines, processors have fewer local options which creates a greater reliance on substitute ingredients and imported products.
“When you don’t value Australian milk, eventually you have to replace it. Whether that’s imported dairy products or powdered ingredients, it’s not what Australian consumers expect when they buy fresh milk.”
Mr Bennett says maintaining consumer confidence should be a priority for the entire dairy supply chain.
“For decades Australian dairy farmers have worked hard to build a reputation for producing safe, high-quality dairy products that consumers trust. Incidents like this risk damaging the reputation of an industry that has earned its place in every Australian fridge.”
And maintaining that trust is a shared responsibility across the dairy supply chain, he said.
“Processors, retailers and regulators all have a responsibility to protect that trust by ensuring products are accurately marketed and consumers get exactly what they are paying for.
“Australia is already losing dairy farmers and local milk production. At the same time, Australia is considering trade arrangements that could increase access for imported dairy products.”
He said that makes it even more important that consumers have confidence in knowing they are buying Australian products off supermarket shelves.
“The solution isn’t greater reliance on imported ingredients or substitute products. It’s ensuring dairy farmers are paid fairly and supported to keep producing the fresh Australian milk consumers want. That is how we protect consumer confidence and the future of Australia’s dairy industry.”