FAMILY First MLC Robert Brokenshire says the SA government's Buy Local campaign is "hypocritical" because its agencies are buying milk from Victoria.
He said freedom of information searches undertaken by his party found that a number of government departments, including SA Water, were purchasing the milk.
"I am disgusted that major government bodies like SA Water would look for 'cost savings' by cutting purchasing of SA milk," Mr Brokenshire said.
SA Water bought an average 1260 litres of Vic milk a month; the Motor Accident Commission bought more than 800L during 90 weeks to March 24; SARDI bought about 800L over 7 months to February; and two directorates of the Department of Planning Transport and Infrastructure bought unquantified sums of the same milk.
"It is totally unacceptable for the government to talk the talk but not walk the walk," Mr Brokenshire said.
He showed Stock Journal a letter sent to him by state Agriculture Minister Leon Bignell, who said the government had to make sure it did not contravene the Australia New Zealand Group Procurement Agreement.
The agreement stipulates that government buyers cannot give preference to local suppliers, nor discriminate against suppliers from other Aust states and territories or NZ.
Mr Bignell also said the Buy Local government policy announced in November required its agencies and ministerial officers to consider "the use and promotion of local wine and beverages at government sponsored events and functions" where it was feasible and reasonable to do so.
But South Australian Dairy Association president David Basham questioned how buying locally could be considered discrimination.
"I wouldn't have thought it was," he said.
"Maybe choosing to pay more for local is discrimination, but if everything is equal, then I don't think it is."
Mr Basham said the government possibly made a mistake by purchasing its milk through Aussie Farmers Direct.
He said it was an online company operating from Vic that sourced milk locally and delivered directly into SA businesses.
A spokesperson for Mr Bignell said SARDI was now sourcing its milk from Adelaide Milk Service, which is supplied by local dairy farms.
He said the government was sponsoring key food and wine promotional events, such as the SA Food Industry Awards, the food and wine categories of the Brand SA Regional Award, Cheesefest, Cellar Door Wine Festival and the Premium Food and Wine Trail at the Royal Adelaide Show.
* Full report in Stock Journal, June 19, 2014 issue.