AUSTRALIA – Farmers are embracing plans for a mandatory code of conduct for the dairy industry, while also highlighting fundamental problems facing the sector they say are being ignored.

Federal Agriculture Minister David Littleproud announced a draft code this week, saying it would give farmers more power.

“A mandatory code will be an industry-defining moment so I want all dairy farmers, processors, and stakeholders to stay involved in shaping it,” he said in a statement.

“Milk levies come and go but the mandatory code would help balance the market power between dairy farmers and processors and improve farmers’ bargaining power.”

Mr Littleproud’s announcement comes after a series of roadshows around the country with farmers, processors, and others in the industry.

The draft code will ban retrospective price cuts and exclusive supply deals, and introduce a dispute resolution process.

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