The review, released just prior to Christmas, indicates that the code appears to be operating as it was intended.
The Australian Dairy Farmers says the review, completed by the Department of Agriculture, Fisheries and Forestry, shows it remains a critical safeguard for fairness, transparency and confidence in dairy contracting.
The report reinforces ADF’s long-held position that the code is necessary to address structural power imbalances between dairy farmers and processors, and that its core settings remain fit for purpose.
ADF president Ben Bennett said the outcome reflected the strength and consistency of farmer advocacy throughout the review process.
“It confirms the Dairy Code of Conduct is doing its job, and that is in no small part due to farmers standing firm on what matters,” Mr Bennett said.
“ADF was clear and consistent, and those core protections have been upheld.”
ADF welcomed the retention of key farmer safeguards, including the permanent ban on retrospective price step-downs, the ongoing requirement for minimum prices in milk supply agreements, and the confirmation that the code should remain in place rather than be repealed or allowed to lapse.
However, Mr Bennett said ADF was concerned the report could lead to greater processor flexibility, despite there being no evidence the current rules are failing.
“In particular, proposed changes around cooling-off periods, exceptional circumstances and contract administration have been put on the table, despite there being no indication from the ACCC the current situation poses a problem,” Mr Bennett said.
Both the ADF and the review noted there is some level of distrust between the farmers and the processors, which the ADF believes goes back to the price claw-backs years ago.
“While it was noted that the reasons for the implementation of the dairy code have largely been resolved, there remains a level of distrust between farmers and processors and the dairy code remains an effective regulatory framework to address this.
“The benefit of the dairy code continues to outweigh the regulatory burden,” the review found.
The dairy code is a mandatory code under the Competition and Consumer Act that regulates the conduct between a dairy farmer and dairy processor.
Introduced in 2020, the dairy code provides important protections for farmers and processors, ensuring fair trading, greater transparency and improved outcomes across the dairy supply chain.
Carried out by the Department of Agriculture, Fisheries and Forestry, the review followed an earlier evaluation of the code in 2021.
The second review examined the role, impact and operation of the dairy code to assess whether it remains fit-for-purpose, and was informed by extensive industry consultation.
Federal Minister for Agriculture Julie Collins said the review reflected the industry view that the code is working as expected.
“Dairy is a vital industry for our country and makes a major contribution to our economy, and we want to ensure that it continues to grow in a fair and equitable way,” Ms Collins said.
“The Albanese Labor Government is carefully considering the recommendations of the second review of the dairy code and will respond through a formal implementation process.
“This will include legislative amendments, updated Australian Competition and Consumer Commission guidance, further consultation on penalty arrangements, and work to support economic analysis ahead of the next scheduled review.”
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