Australian Dairy Farmers national council voted seven to six in favour of the mandatory code, with federal Agriculture Minister David Littleproud saying he would “work with farm groups to get this code right”.
Tasmania, NSW, Queensland, South and Western Australia voted for the mandatory code, despite stiff opposition from processors, especially New Zealand processing giant Fonterra.
South Australian Dairyfarmers Association president John Hunt said a mandatory code was about “setting the rules everyone has to adhere to, to create a level playing field”.
“The ACCC (Australian Competition and Consumer Commission) has said the cost to farmers is minimal, almost non-existent,” Mr Hunt said.
The United Dairyfarmers of Victoria cast its six votes against adopting a mandatory dairy code, but its president Adam Jenkins said they would respect the majority view.
Mr Jenkins said the UDV’s vote reflected the policy adopted at its May annual conference, where delegates voted against a mandatory code.
But while ADF is now committed to the mandatory code, Mr Jenkins said there had been growing frustration with some processors sitting on the Australian Dairy Industry Council.
“ADIC couldn’t come to agreement on reforming the voluntary code or going to a mandatory code,” Mr Jenkins said.
Extracts of an ADF presentation to dairy farmers on the code review obtained by The Weekly Times showed the Australian Dairy Products Federation, whose president is Burra Foods chief executive Grant Crothers, Fonterra, Norco and Lion all opposed a mandatory code.
Bega Cheese and Canadian dairy giant Saputo were not mentioned, however Saputo has previously stated it supported a mandatory code.
In contrast to processors, a survey of 800 dairy farmers across Australia’s key dairying regions showed few farmers opposed a mandatory code.
The Dairy Australia survey showed:
46 per cent of farmers were positive on the mandatory code of conduct;
26 per cent were neither positive nor negative;
16 per cent responded with “can’t say”; and
11 per cent were negative.
Analysis by dairy region showed the greatest positive result came from Tasmanian and NSW dairy farmers, while Queensland’s were the least positive.