NFF, ADF don't support calls for market re-reguation

NFF, ADF don't support calls for market re-reguation

Dairy
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National Farmers' Federation president Fiona Simson and Australian Dairy Farmers have welcomed recognition that dairy farmers are under pressure.

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National Farmers' Federation president Fiona Simson and Australian Dairy Farmers have welcomed recognition that dairy farmers are under pressure.

"Consecutive tough seasons and resulting sky-rocketing water and grain prices are further eroding dairy farmers' already small profit margins," Ms Simson said.

However, Ms Simson said the NFF did not support calls for market re-regulation.

"While domestic milk consumption is large, the export of milk products is significant. Australia's dairy farmers compete in a highly sensitive global market.

"Market intervention and regulation could potentially undermine global competitiveness."

In March, the NFF welcomed the Government's commitment to pursuing a mandatory code of conduct to level the playing field for farmers when dealing with the might and power of processors.

Developed through comprehensive industry consultation, the Code outlines specific rules of engagement between farmers and processors to ensure farmers are not at an unfair disadvantage.

Importantly the Code will not regulate farm gate prices or set the price that dairy processors can charge for their product.

"Dairy farmers are in challenging times," Ms Simson said.

"A sophisticated, informed, progressive approach to easing these challenges is needed. The introduction of a mandatory Code of Conduct is a priority."

Former Victorian Premier, John Brumby is also leading the development of a National Dairy Plan.

"We look forward to continuing to work with industry on these initiatives and with Government to chart a brighter future for our dairy sector and it's contribution to agriculture's $100 billion-by-2030 vision."

ADF said it does not have policy to support re-regulation of the Australian dairy industry.

"We have supported the Mandatory Code of Conduct to deliver more transparent contractual arrangements and we look forward to reviewing the Government's draft code, which we expect will be released shortly for comment," it said in a statement.

"We will continue to work with our state member organisations, the Government and Opposition, Senator Pauline Hanson as well as other representatives in Canberra to ensure that all suitable action be taken to secure the sustainability of dairy farmers," the statement read.

"Sustainable pricing through the supply chain is paramount and we will continue, in concert with our members and the Government, to identify the most suitable actions that support dairy farmers.

"Clearly this is an extremely complex policy discussion, particularly given our export exposure. However, it is important to note that the dairy the industry is at a critical point and these issues must be addressed."

The story NFF, ADF don't support calls for market re-reguation first appeared on Farm Online.

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