Barnaby Joyce
August 25, 2016
The Australian Competition and Consumer Commission will begin an inquiry into the dairy industry in November.
Deputy Prime Minister Barnaby Joyce said on Thursday the inquiry would be held under Part VIIA of the Competition and Consumer Act 2010.
This would give the ACCC the powers to obtain information from companies.
“Our dairy farmers deserve fair returns at the farm gate, as well as transparency in milk price arrangements and supply contracts, which is why I can announce the ACCC will undertake a detailed inquiry into our national dairy industry,” Mr Joyce said.
“An in-depth and independent inquiry is a thorough and fair way to uncover inefficiencies and inequities that our farmers face – and identify a way forward.
“I encourage everyone in the dairy industry to contribute to the inquiry. There will be confidentiality arrangements in place to ensure the ACCC gets the information it needs while protecting commercial interests.”
The ACCC will investigate sharing of risk along the supply chain, supply agreements and contracts, competition, bargaining and trading practices in the industry and the effect of world and retail prices on profitability.
It will release an issues paper and engage with stakeholders through public and private hearings, and take written submissions, before delivering a final report to the Federal Government in the second half of 2017.
The ACCC’s Agriculture Unit, which was established through an $11.4 million commitment by the Federal Government in the Agricultural Competitiveness White Paper, will lead the inquiry.
- Further information about the ACCC’s inquiry, including its terms of reference, will be made available at www.accc.gov.au/agriculture
