The VFF UDV won’t support the absorption of Dairy Food Safety Victoria (DFSV) into Safe Food Victoria without the business case the Victorian Government committed to providing, demonstrating clear benefit to the Victorian dairy industry.
VFF UDV Acting President Ian Morris said the dairy industry has consistently opposed the reform and made its position clear.
“The dairy industry has never supported this proposal.”
“We were assured that the modelling and analysis underpinning the reform would be shared with industry. That has not occurred, yet legislation has now been introduced to Parliament.”
“Without evidence of market failure or clear benefit to the Victorian dairy industry, there is no justification for absorbing specialist dairy oversight into a multi-sector regulator when it is working effectively, underpins export confidence, and operates on a fully cost-recovered basis.”
For more than two decades, Dairy Food Safety Victoria has operated as a dairy-specific, fully cost-recovered regulator. Its 2024–25 Annual Report reports net assets of approximately $6.09 million, reserves built from industry revenue to manage dairy regulatory risk.
“These funds were generated by dairy to support dairy regulation.”
“If structural reform proceeds, there must be absolute clarity about how dairy-derived funds are protected and how costs are allocated under any new framework,” Mr Morris said.
VFF UDV’s opposition to a proposed three percent increase to dairy licence fees for 2026–27 reflects the same principle.
“Cost recovery settings should not be advanced while the regulatory structure itself is unresolved.”
“At a time of seasonal pressure and rising costs, increasing fees without clarity about future arrangements would be premature.”
If Safe Food Victoria proceeds, VFF UDV says any cost-recovery model must be transparently reviewed across all regulated sectors to ensure equity and proportionality to risk.
“Cost allocation must reflect risk and the regulatory maturity of each sector.”
VFF UDV supports practical improvements in regulatory coordination, but reform of this scale must be supported by evidence and demonstrably serve the interests of Victorian dairy farmers.
VFF UDV is calling on the Victorian Parliament to exclude dairy from the first stage of reform and allow proper consultation and assessment before any structural change affecting the dairy sector proceeds.
VICTORIAN DAIRY INDUSTRY SNAPSHOT
- Victoria produces 63 per cent of Australia’s milk and 72 per cent of national dairy exports by volume, making it Australia’s dairy industry powerhouse.
- More than 2,500 farms and 17,000 jobs rely on a regulatory system designed specifically for the risks of a highly perishable product.