Australian dairy industry inquiry goals set

By Jim Cornall

- Last updated on GMT

The Australian Competition and Consumer Commission is looking for input on its inquiry into the dairy industry. Pic: ©iStock/JohnCamemolla
The Australian Competition and Consumer Commission is looking for input on its inquiry into the dairy industry. Pic: ©iStock/JohnCamemolla

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The Australian Competition and Consumer Commission (ACCC) says its dairy industry inquiry will examine competition between milk processors, contracts between processors and farmers, global supply markets, and the profitability of dairy farms.

In its Dairy Inquiry Issues Paper, the ACCC has laid out the key issues it will look at as part of its year-long inquiry, which it has been directed to carry out by the Australian Government.

ACCC chairman Rod Sims said the ACCC was seeking feedback on issues across product and geographical markets, looking at competition and fair trading issues.

ACCC looks for feedback

Feedback on the document​ can be made up to December 12, 2016, with public forums and hearings expected to take place between March and May 2017 before the final report is issued in November 2017.

“As a formal inquiry, the ACCC will also have the ability to compel information from parties including processors and retailers,”​ Sims said.

“Our aim is to present a really clear picture of the issues facing the market today, and make any recommendations to ensure it remains fair and competitive.”

The ACCC must provide its final report to the Treasurer by November 1, 2017.

Key issues to be considered:

  • competition between milk processors
  • contracting practices
  • the availability of price and other market information
  • the effect of private label products, including pricing, on the industry
  • options for supply into global markets
  • the key factors influencing the profitability of dairy farms.

Investigations on price cuts

Separate to the Inquiry, the ACCC investigations relating to the cuts to the price paid to dairy farmers for milk solids, announced by Murray Goulburn and Fonterra Australia in April and May 2016 respectively are continuing.

The ACCC has been provided with additional funding of A$11.4m (US$8.8m) over four years to establish an Agriculture Unit to conduct investigations and engagement in rural and regional areas.

Related topics Regulation & Safety Fresh Milk