Competition policy at a cross roads

Jan 25, 2016

January 26, 2016 marks five years since Coles’ supermarket dropped the price of its home brand milk to $1 per litre, igniting a price war with Woolworths that reduced the value of milk to an unsustainable level.

Australian Dairy Farmers (ADF) has continued calls for the Federal Cabinet to adopt stronger misuse of market power laws to foster a more competitive business environment.

ADF President, Simone Jolliffe said there have been important breakthroughs for competition policy since 2011.

“The introduction of the Food and Grocery Code, which included a large number of ADF’s recommendations, was a constructive first step toward fostering a more competitive business environment.

Further to this the Australian Government’s support for key recommendations from the Harper Review of Competition Policy is extremely positive,” Mrs Jolliffe said.

“ADF also welcomed the announcement in the Agricultural Competitiveness White Paper of $11.4 million over four years to boost the ACCC’s engagement with the agriculture sector including a new Agricultural Engagement Unit.”

However, Mrs Jolliffe said the industry would continue to advocate for improved transparency regarding the impact of retailer actions on suppliers. ADF also continues to advocate for the regulating bodies to have the power to prevent predatory pricing in future. 

“ADF also strongly supports the Harper Review’s recommendations for any updated competition and consumer law to include an effects test,” Mrs Jolliffe said.

“Addressing the misuse of market power is crucial in determining the Australian dairy industry’s future profitability and sustainability.”

Mrs Jolliffe encouraged consumers seeking to show their support for farmers to “buy branded”.

“The more branded milk we buy the more money stays in our dairy value chain. By keeping these dollars in the value chain dairy has the capacity to reinvest in industry research and innovation – which helps to strengthen our farmers, improving their efficiency and prospects of long term sustainability.

Buying branded means investing in choice for consumers on our supermarket shelves and in the future of our dairy farmers. This Australia Day – show your support by buying branded.

 

Collective bargaining: A key negotiation approach

Nov 26, 2014

Officially launched by the Federal Minister for Agriculture, Barnaby Joyce in Taree, NSW, the ‘Collective Bargaining for Dairy Farmers’ guide is an easy to read document for dairy farmers interested in forming collective bargaining groups to negotiate with milk buyers.



Prepared by Dairy Australia, in conjunction with Australian Dairy Farmers (ADF), the guide aims to provide practical advice and insights for farmers looking to level the playing field between small suppliers and large milk buyers.


The guide explores the mutual benefits both dairy farmers and milk buyers can receive when collective bargaining is employed effectively. While not suitable for all, collective bargaining has the potential to deliver many benefits to dairy farmers, including supply chain efficiencies, new marketing opportunities, greater input into contractual terms and more certainty on price.


From the milk buyers end, collective bargaining can result in enhance milk quality, guaranteed year-round fresh milk supplies and improved two-way communications with the collective bargaining group. These mutual benefits show that when effectively employed, collective bargaining can be a win-win for both parties involved.


In 2011, ADF renewed its authorisation grant from the ACCC to collectively bargain with milk processors. This authorisation enables dairy farmers to form and register collective bargaining groups under ADF’s existing authorisation without having to separately apply to the ACCC.


For more information about collective bargaining groups and authorisation guidelines, please contact the ADF Office: (03) 8621 4200

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