Australian Dairy Farmers’ (ADF) has welcomed the announcement of the Competition and Consumer (Industry Codes – Food and Grocery) Regulation 2015 – Supermarket Code as a positive first step toward addressing the imbalance of market power between retailers and suppliers.
ADF President, Noel Campbell was pleased to note that many aspects of the draft Mandatory Code of Conduct, which ADF in collaboration with Queensland Dairyfarmers’ Organisation began developing in 2011, have been adopted in the Prescribed Code.
The Prescribed Grocery Code has been developed by the major retailers, Coles and Woolworths, and the Australian Food and Grocery Council.
Recognising the important role the Government has played in securing this outcome, Mr Campbell said the additional protection in this area was most welcome.
“The Prescribed Code of Conduct is not perfect, but it does address several key imbalances with regard to major retailer power over suppliers,” Mr Campbell said.
“We will be watching the implementation of this Code carefully over the next three years, with a view to seek the strengthening of regulations if necessary.”
ADF has long advocated for a Code of Conduct to foster a fairer supply sector going forward, and thanked the Government for working persistently with retailers to achieve the Code.
“It is our expectation that once the Code comes into force all major retailers including Aldi, Coles, Metcash and Woolworths will sign on,” Mr Campbell said.
“We will continue to closely monitor the Codes’ effectiveness over the period to follow.”
ADF continues to work with the Government to strengthen competition policy through submission to the Harper Review of Competition Law and Policy as well as the Agricultural Competitiveness White Paper with the hope that this will end unjust practices such as the $1 per litre campaign.
Media Contact:
Shona McPherson, Media Officer
M: 0447 161 919
E: media@australiandairyfarmers.com.au