November 1, 2019
The Queensland Dairyfarmers’ Organisation (QDO) has slammed a proposed new code of conduct for the industry, saying it still leaves dairy farmers “high and dry”.
Dairy farmers and key dairy industry organisations were called on this week to provide feedback on an exposure draft of the Mandatory Code of Conduct for the Dairy Industry.
On Friday, the QDO issued its own assessment.
“Putting it bluntly, the initial intent of the Code has been significantly watered down in the interests of processors over farmers in this draft,” QDO president Brian Tessmann said.
“The intent to address the imbalance of power between farmers and processors will not be achieved with this watered-down Code.”
Mr Tessmann said while many core issues had been addressed, there were still three primary areas that specifically concerned Queensland dairy farmers which would not be covered or remedied by the Code.
These included:
- The disparity between the contract period (usually 3-5 years) and fixed pricing period (usually 12 months)
- Exclusivity clauses which were still allowed or were a part of contracts between processors and farmers, and
- The Code does not cover the conduct of retailers in the dairy industry value chain.
“QDO and several other industry bodies have consistently requested these areas be addressed in a manner that is fair and reasonable and provides adequate protection to dairy farmers, but has been consistently met with dismissal from those responsible for drafting the Code,” Mr Tessmann said.
“A case in point is that there is almost no chance that the third point listed above, will be considered for inclusion in the Code.”
Mr Tessmann said given significant problems with the exposure draft, it seemed very ambitious to try to implement the new Code on January 1.
“We need to also ensure that contracts signed before the commencement date are also compliant,” he said
“QDO has been open and transparent regarding the Code, both its benefits to the industry and the flaws with its current drafting.
“We will continue to advocate for its acceptance by our members once the areas of concern outlined above have been properly addressed.”
In the meantime, the QDO will strongly urge that while the Code remains in draft format, farmers should consider what is fair and reasonable in their contract term for their own circumstances before signing, and be prepared to ask for changes.
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