The United Dairyfarmers of Victoria (UDV) today welcomes the finalisation of the dairy Mandatory Code of
Conduct with a range of measures introduced to improve transparency and set minimum standards of
conduct in milk supply agreements.
Federal Agricultural Minister, Bridget McKenzie today unveiled the dairy Mandatory Code of Conduct, along
with a legislative explanatory statement and a farmer guide.
“Whilst the Code will not be responsible for setting the farm gate milk price, it will bring back some balance
of power between farmers and processors and set standards and commitments for industry participants,”
said Mr Mumford, UDV President.
“It is good to see the Government has listened to industry and the Code has been strengthened following
strong feedback on the consultation draft released last month.”
The Mandatory Code will require processors to publish Standard Form Agreements on 1 June each year and
will ban unfair practices including retrospective step downs, unilateral changes to contracts and processors
withholding any loyalty payments.
Mr Mumford said the UDV had played a key role in strengthening the Code, including broadening the good
faith provision to cover all processors and a requirement for all processors to publish a non-exclusive
Standard Form Agreement on 1 June each year.
“Requiring processors to publish a non-exclusive agreement by default means farmers can take advantage of
milk trading platforms that are currently being developed, if that suits their farming business,” he said.
“Processors can also publish an exclusive supply agreement too, giving farmers much more flexibility with
their supply arrangements.”
“We thank Minister McKenzie and the Government for listening to our concerns and strengthening the code
accordingly and we encourage all Victorian dairy farmers to consider the Code and the benefits it could have
to their business. We have a chance to rectify any issues with the first review scheduled for January 2021.”
For more information about the mandatory Dairy Code of Conduct visit the Department of
Paul Mumford, UDV President, 0439 790 469
Ashlee Hammond, UDV Manager, 0427 979 095