Final ACCC dairy inquiry forum at Burnie

ACCC commissioner Mick Keogh said there was a lot of bad feeling around last year’s dairy farmgate price reduction at the Tasmanian forum, which was held at Burnie Golf Club.

“There were quite strong views expressed by the attendees,” Mr Keogh said.

The difficulties around changing milk processors, loyalty payments and contracts for milk supply were also top of mind for Tasmanian farmers.

“Part of the loyalty payments are held over until the following year, so it makes it difficult for farmers to change,” Mr Keogh said.

“Another issue was with the contract requirements if farmers wanted to change processors. Farmers have to give three months notice, but processors don’t have to do that,” he said.

Many processors announce milk prices on July 1 each year, which means farmers have to give notice of their intention to change processors by April 1.

“Farmers can’t give notice until they know the price, and this delay limits the ability of farmers to move between competitors,” he said.

Prices, contracts and payments were topics that also came up at the mainland dairy forums, along with arrangements within dairy’s domestic and export markets.

“Fresh milk doesn’t cross Bass Strait so there’s no competition from [farmers in] other states. Processed milk products do cross states though,” Mr Keogh said.

This forum was the last of seven conducted with farmers from dairy-producing regions in Australia.

Dairy processors will speak with ACCC representatives about contract arrangements, markets and products in the next stage of this inquiry.

The ACCC’s final report is due to Treasurer Scott Morrison by November 1.

Farmers who did not go to the forum can call ACCC on (03) 9290 1997 or email dairyinquiry@accc.gov.au.