![Dairy grants equal $1.51m as code talks stall Dairy grants equal $1.51m as code talks stall](/images/transform/v1/crop/frm/Fuxf4VmvfUmd225xeYC69T/0c7ce149-2e8a-4db3-84e7-15a317e4e706.JPG/r0_313_6000_3688_w1200_h678_fmax.jpg)
DAIRY Australia has welcomed a federal government announcement of $1.51 million to support dairyfarmers, which also includes $500,000 for training in financial and legal literacy and risk management.
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Agriculture Minister Bridget McKenzie said the government was delivering on its election commitments by providing grants to Australian Dairy Farmers and Dairy Australia.
"The grant to Australian Dairy Farmers of $1.01 million will be used for projects to support a more transparent and accountable dairy sector," she said.
"The grant will develop a standard contract that will fit with the industry's mandatory code of conduct, making it easier for farmers to deal with processors.
"It will explore the design, development and market testing for a new milk pricing and trading platform, which could potentially give dairy farmers more selling options.
"And it will explore the development of a payment system using blockchain technology to enable quicker and more transparent, secure payments to dairy farmers by processors."
This announcement comes after the federal government announced it was fast-tracking the roll-out of the mandatory Dairy Code of Conduct to begin in January, however the draft code has received some criticism.
Ms McKenzie said the government was consulting on what a milk marketing and trading platform might look like as part of the development of the mandatory Dairy Code of Conduct.
"The grant for Dairy Australia of $500,000 will help dairyfarmers through the development and roll out or practical materials for farmers to build financial and legal literacy and risk planning," she said.
"Dairy Australia will also develop business tools to help farmers better understand their production costs and milk prices in their region. This will give them more information for when they enter into contract and payment arrangements, to make sure those arrangements best suit their business."
Dairy Australia managing director David Nation said the funding announcement was "very welcome".
"(It) will enable us to provide practical information as farmers adjust to operating with the new code," he said,
Among the other announcements were $10m in grants to help dairyfarmers upgrade or invest in energy efficient equipment to reduce energy costs, an extra $8.1m for the Australian Competition & Consumer Commission's Agriculture Unit to establish a dairy specialist position and ensure compliance with a mandatory dairy code, and $3m to support farmers set up cooperatives and other collective business models.
"The future of the dairy industry is central to our national interest," Ms McKenzie said.
"It benefits all Australians as well as providing an income for the 5200 dairy farms across the country, the 24,400 Australians who work on them and the 21,000 people who manufacture milk into other dairy products."
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