Producers slam dairy findings
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.