ADF welcomes National Food Plan but calls for action

The National Food Plan is all well and good, but plenty more needs to be done to ensure supermarkets pay dairy farmers a fair price for milk, says Australian Dairy Farmers (ADF) President Chris Griffin.

“ADF is calling on the government to support the dairy industry’s recommendation for an enforceable and mandatory code of conduct for supermarkets that covers the entire value chain, from farmer to retailer,” Griffin said.

“ADF also calls for a Supermarket Ombudsman to be established to investigate complaints and strongly enforce the new code with appropriate financial penalties.”

The ADF also called for the Competition and Consumer Act to be amended to balance the “enormous market power” of supermarkets and ensure they act in good faith.

“We are particularly pleased to see the government take up the ADF’s recommendation to the Senate Inquiry into the impacts of supermarket price decisions on the dairy industry to convene a forum to examine options for better managing supplier/supermarket relationships,” Griffin said.

Strong dairy farmer representation will be important at the forum, Griffin said, so the ADF has written to the Minister, urging him to ensure this happens. Griffin said it is important that dairy farmers have the opportunity to tell their stories about the impacts of current supermarket pricing practices.

Other commodity group representatives should also attend the forum, as well as the ADF, Griffin said, to allow for “more frank and fruitful discussions” as many suppliers are unwilling to speak out against the supermarkets for fear of retribution.