Submission to the Dairy Code Review

Submissions » Submission to the Dairy Code Review

The Victorian Farmers Federation (VFF)/United Dairyfarmers of Victoria (UDV) appreciates the opportunity to provide this submission to the Dairy Industry Code Review.

The VFF/UDV notes that the development of the Dairy Industry Code was initiated by the
2015-16 retrospective step-downs in milk prices by the then two largest milk processors. This
step-down had a major impact on the industry and an Australian Competition and Consumer
Commission (ACCC) inquiry and the subsequent development of a mandatory Code of

The need for the Code of Conduct arose because processors were free to behave poorly and
did not self-regulate adequately. Market conditions indicate that the need for the Code
remains as strong as ever.

The main purpose of the Code is to promote greater transparency in milk pricing, address
market failures and promote trust among market participants. The VFF/UDV considers that the
Code of Conduct has worked well to correct some market failures and to promote improved
competition for milk at the farmgate. The Code of Conduct as been a positive for farmers.