The Dairy Industry Code came into effect on 1 January 2020.
The code provides a fairer process for negotiating contractual arrangements between dairy farmers and dairy processors. It improves the balance in bargaining power between dairy farmers and processors and replaced the previous voluntary industry code. The code also includes dispute resolution and mediation processes.
The Dairy Industry Code is a result of extensive stakeholder consultation with dairy farmers and processors.
Information to help dairy farmers and processors understand the code and implement its requirements is available on the department’s Farmer guide to the Dairy Industry Code. Frequently asked questions are also available to assist farmers and processors.
The Australian Government regulates the dairy supply chain through a combination of the Dairy Industry Code and the Food and Grocery Code of Conduct which covers the relationship between dairy processors and retailers.
First review of the code
It is a legal requirement that the Minister for Agriculture review the Dairy Industry Code on or after 1 January 2021. The review ensures that the code is operating as intended.
In accordance with the requirement, a review of the Dairy Industry Code was completed in 2021. The review was conducted by the department with the support of the Dairy Industry Code Review Reference Group. The Group represented the eight dairy regions and included key processor representatives.
The review found the Dairy Industry Code is providing a crucial framework for the dairy industry and is operating as intended. Nonetheless, while stakeholders were highly supportive of the Code, areas for improvement were identified. The report made three recommendations to improve the operation of the Dairy Industry Code.
The Australian Government has agreed to implement the three recommendations proposed in the report. The Australian Government response to the first review of the Dairy Industry Code is available below.
A second review of the Code will be required on or after 1 January 2023.
Download the review report for the Dairy Industry Code and the Australian Government response
Department of Agriculture, Water and the Environment, March 2022
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Compliance and dispute resolution
For concerns related to compliance with the code:
The Australian Competition and Consumer Commission (ACCC) is responsible for enforcement of the code and investigates alleged breaches. For more information about the code please visit the ACCC website.
If you have concerns about a potential breach of the code or want to make contact with the ACCC, email dairy@accc.gov.au or call 1300 302 021.
For concerns related to the performance of your agreement:
The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) can provide information on options to resolve disputes with access to mediation and/or arbitration services. For more information about the services the ASBFEO provides to dairy businesses visit the ASBFEO website.
If you would like advice on dispute resolution processes or an issue with the performance of your agreement, email info@asbfeo.gov.au or call 1300 650 460.
Dairy Farmers
A guide to the Dairy Industry Code – what it means for you and your business.
Dairy Processors
Information and checklist for implementing the Dairy Industry Code.
Download the factsheet
Department of Agriculture, Water and the Environment, October 2020
| Document | File size |
|---|---|
| Dairy Industry Code factsheet PDF | 212 KB |
| Dairy Industry Code factsheet DOCX | 52 KB |
If you have difficulty accessing these files, visit web accessibility for assistance.