Pro­duc­ers slam dairy find­ings

Tasmanian Country - - THE STOCK REPORT -

DAIRY lobby groups say su­per­mar­kets got off lightly in the re­cent Aus­tralian Com­pe­ti­tion and Con­sumer Com­mis­sion re­view of the in­dus­try, some say­ing farm­ers will bear the brunt of sup­ply chain imbalances.

The 226-page ACCC in­terim re­port, released last week, in­ves­ti­gated the com­pet­i­tive­ness, trad­ing prac­tices and trans­parency of the Aus­tralian dairy in­dus­try.

Among its rec­om­men­da­tions was a manda­tory code of con­duct to ad­dress the bar­gain­ing power im­bal­ance be­tween farm­ers and pro­ces­sors.

The re­port high­lighted that most dairy farm­ers have “very lim­ited bar­gain­ing power” which re­sulted in farm­ers car­ry­ing a “dis­pro­por­tion­ate” risk.

The ACCC found a sim­i­lar pro­por­tion of rev­enue re­turned to farm­ers from su­per­mar­ket house brand and branded milk sales.

But lobby groups say the gov­ern­ment agency did not go far enough, miss­ing an op­por­tu­nity to ad­dress the re­la­tion­ship be­tween su­per­mar­kets and pro­ces­sors.

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