Markets, trade and value chain

Collective Bargaining

• ADF supports collective bargaining arrangements via the Trade Practices Act 1974.

Competition

• The Competition and Consumer Act 2010 should include an “effects test” consistent with competition policy around the world.

 Contract management

• The Australian Government should establish a mandatory code of conduct covering the whole supply chain to balance the market power of major retailers.
• The Australian Government should appoint an Ombudsman with the powers to ensure compliance.
• A statutory duty of good faith should be inserted into the Competition and Consumer Act 2010.
• Unconscionable conduct should be defined in the Competition and Consumer Act 2010 as “any action in relation to a contract or to the terms of a contract that is unfair, unreasonable, harsh or oppressive, or is contrary to the concepts of fair dealing, fair-trading, fair play, good faith and good conscience”.

 Co-operatives

• ADF supports Australian farmer-owned co-operatives as the foundation for a strong Australian dairy industry.

 Foreign Investment

• Foreign investment is important to the Australian dairy industry.
• The Foreign Investment Review Board (FIRB) should examine foreign investment on a case-by-case basis.

 Health and Nutrition

• ADF must ensure health and nutrition policy initiatives are consistent with the National Health and Medical Research Council (NHMRC) guidelines.
• Primary industry bodies and RDCs must have a seat at the table of all relevant health and nutrition policy forums.

 Infrastructure

• Funding must be provided for strategic regional infrastructure projects beneficial to agriculture and regional communities.
• ADF supports the delivery of the Australian Government’s Roads to Recovery program.
• State road authorities should be appointed as the sole approver of heavy vehicle operations on local roads.

Interest Rates

• ADF must ensure Australia’s monetary policy recognises the impact a high Australian dollar has on our exports.
• Australia must focus on levers that improve investor and business confidence and reduce interest rates in line with other developed economies.

 International Trade

• Trade agreements must provide genuine liberalisation of dairy products and commercially meaningful opportunities for Australia’s dairy industry.
• The number of Agricultural Counsellor postings should be increased to help remove barriers to trade (including non-tariff barriers) in key international markets such as Vietnam, the Philippines and Saudi Arabia.
• Investor-State Dispute Settlement (ISDS) clauses must not hold up free trade agreements (FTAs).
• The Australian Government must ensure protectionist countries do not use aspects of the World Trade Organisation (WTO) framework to reduce or eliminate genuine dairy market reform in the domestic markets.
• The Australian Government must ensure the Indonesia–Australia Comprehensive Economic Partnership Agreement (IA‐CEPA) includes:
  • a systemic approach to resolving non-tariff barriers, with the application of sound science and international standards and cooperation between respective regulatory agencies as guiding principles; and
  • investment clauses that encourage a mutually beneficial two‐way flow subject to appropriate protections for investors.
• The Australian Government should push for the removal of sponsored market support in the European Union (EU).
• The Australian Government must ensure the EU consistently applies CODEX standards, recognises Australian health and food safety standards and improves regulatory co-operation based on the following principles:
  • That health and food safety standards are based on sound science noting that milk production systems differ between nations;
  • Ensure non-discrimination between domestic and imported goods in accordance with GATT Article II (national treatment);
  • There is transparency of processes in developing regulations and in implementing regulations;
  • Achievement of the most efficient trade enhancing and least trade restricting practices;
  • Focused on outcomes;
  • Real time consultation with dairy stakeholders in developing solutions to existing regulatory practices. And an early warning system for development of regulations; and
  • Consistency in approach to developing regulations.
• The Australian Government must ensure the EU does not impose an overly restrictive and anti-competitive Geographical Indications (Gis) regime on Australia.
• A UK trade agreement must have:
  • commercially meaningful liberalisation of dairy products from date of implementation with a substantive compound annual growth rate
  • dairy product coverage;
  • quotas organised as a transitory measure to free trade within a short time frame (5 years maximum);
  • in‐quota tariff rates set to zero;
  • non‐tariff measures based on international standards and sound science with a mandatory requirement for regulatory cooperation that can lay the basis for harmonisation of standards.
• ADF supports the Nairobi Ministerial Decision to eliminate export subsidies.
• ADF supports the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP) as it will create dairy export opportunities, particularly in Canada, Japan, Malaysia, Mexico, Peru, and Vietnam.

 Marketing

• Educate consumers on healthier food choices.
• Food labelling systems should permit effective communication to consumers, support fair trade for industry and brand owners, have a high level of compliance and be able to be enforced.
• Do not support mandatory health promotion messages to consumers by way of food labels including front of pack labelling.
• Support a voluntary country of origin labelling scheme.

Pricing

• $1-per-litre milk is unsustainable and does not give a fair return to dairy farmers and others in the supply chain.
• ADF supports branded milk as a means to increase returns to dairy farmers.
• Australian milk producers should derive the maximum price amount achievable.