THE government will request a inquiry into the national dairy industry by the Australian Competition and Consumer Commission as one of the outcomes from today’s symposium.
Deputy Prime Minister and Minister for Agriculture and Water Resources Barnaby Joyce said Treasurer Scott Morrison will request the ACCC undertake an inquiry under Part VIIA of the Competition and Consumer Act 2010 providing the Commission with 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 inquiry, to begin in November, 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.
The ACCC will release an issues paper and engage with stakeholders through public and private hearings, and written submissions to deliver a final report to government in the second half of 2017.
The ACCC’s Agriculture Unit, which was established through an $11.4 million commitment by the Coalition Government in the Agricultural Competitiveness White Paper, will lead the inquiry.
