United Dairyfarmers of Victoria president Adam Jenkins is encouraging south-west dairy farmers to have input into a proposed mandatory code of conduct for the dairy industry.
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Mr Jenkins said the federal agriculture department wanted feedback on how the proposed code could address issues such as cooling off periods when entering and terminating contracts, dispute resolution processes and limiting exclusive supply clauses between processors and farmers.
Comment from dairy farmers is also wanted on whether the code should address issues such as the termination of contracts and prohibiting retrospective milk price step-downs.
A consultation forum on the code will be held at the Camperdown RSL on November 26.
The dairy industry’s national peak body, the Australian Dairy Industry Council (ADIC), has stayed away from calling for a ban on price step-downs but wants processors to have to give farmers at least 30 days’ notice of any forward step down, including a reason for the adjustment.
The ADIC also wants processors to be required to offer farmers a standard contract with an opening price by June 1 each year, one month before the start of the next financial year.
Processors should also be required to pay farmers by the 15th day of the next month for milk delivered under their contract and both farmers and processors should have to give 30 days’ written notice if they don’t intend to renew a fixed term contract and agree on a debt repayment scheme for outstanding payments, the ADIC said.