“If they don`t help maintain the milk supply, it`s not just dairy farms that are closing.” As fires sweep across Australian arable land, there is concern about the “viability” of dairy farms and milk stocks. The call follows a proposal by Victorian businessman John Dahlsen for a 40-cent-per-litre tax on the price of milk in supermarkets. … Milk production prices are based on composition criteria (fat and protein content) as well as safety and quality parameters such as somatic cells and microbiological tests. These tests are carried out or carried out by processors and dairy farmers have expressed concern about the consistency and reliability of these tests and the way processors manage milk payments based on test results. These tests should be carried out in such a way as to ensure consistency, openness and transparency.  “There is too much processing capacity and too little milk,” he said. The Milk Value Portal (MVP), developed by the Australian Dairy Products Federation, was created to give farmers a better understanding and transparency of Farmgate milk prices. 3.100 The Committee believes that mediation services have the potential to more actively assist farmers in resolving disputes over milk delivery contracts and welcomes ASBFEO`s interest in the dairy sector.
AUSTRALIA`s last dairy cooperative, Norco, has signed exclusive milk delivery contracts to farmers, which contain a clawback provision that the industry says is contrary to the spirit and intent of Australia`s mandatory code. On the other hand, there has been a reverse agreement situation in the area where, once you have been called that, they have been signed with a processor, they are not actually allowed to talk to other processors and negotiate a better price or a better deal as long as that so-called agreement exists.  All Australian milk producers who enter the Woolworths supply chain, either directly or through processors, can apply for access to subsidies of up to $100,000, with the first application period open from December 1. 3.50 The Committee also heard farmers prove that retroactive price increases were not paid to farmers who had partly changed processors during the season.  Their argument was that the price of milk delivered by the parties under the same delivery conditions had to be proportional, regardless of whether the suppliers had changed processors. Fair contractual principles should ensure that retroactive price increases are paid to all farmers, that they have provided part of them throughout the year. 3.39 Because of the fragility of raw milk production, farmers need conditions in contracts that rebalance power between themselves and processors. 3.48 Given the preferred position of processors in understanding their own operating environment, it appears that processors are responsible for communicating clearly and regularly with suppliers who report potential price declines as soon as possible. However, I hope that setting more conservative prices for milk opening could also reduce the need and frequency of retroactive price cuts. The industry interest group, Dairy Connect, is calling for a joint campaign against “false” and “meat” labels, as natives of the plant-based age are beginning to influence local agricultural producers.