Pauline Hanson slams Mandatory Dairy Code of Conduct as “massive failure!”
MEDIA RELEASE
The long-awaited Mandatory Dairy Code of Conduct has been described by One Nation Senator Pauline Hanson as a massive failure that doesn’t secure a fair milk price for dairy farmers and may even drive farm gate prices down.
She added that a code has been needed since early 2018, when it was first suggested, to help stem the continuing haemorrhaging of farmers from the dairy industry.
Senator Hanson said blame for any fallout from the disastrous mandatory code would be held by Prime Minister Scott Morrison and Agriculture Minister Bridget McKenzie, who she said had to have “her arm twisted” to actually finish the code promptly as was promised.
“The code, which has been delayed all year, has finally been finished thanks to pressure from One Nation, but they still couldn’t get it right. It is one massive failure and an enormous disappointment for struggling farmers,” Senator Hanson said.
“This code was supposedly made a priority by Prime Minister Scott Morrison, who had to virtually twist the arm of Agriculture Minister McKenzie to get on and finish it promptly, and the result is very disappointing.
“The simple summary is this: the dairy code of conduct will not save farmers from being forced to sell their milk below cost price.
“It begs the question: why is it so hard for the Government, particularly the National Party, to support dairy farmers and give them some surety?”
Senator Hanson noted that the Australian Competition and Consumer Commission had recommended the code in April 2018, and delays in implementation had overseen dairy farmer numbers fall by approximately 500, which was having a detrimental impact on rural communities. She added that Australia was experiencing falling production each year and, by 2023, would be a net-importer of dairy products.
Senator Hanson said the Mandatory Dairy Code failed in key areas:
- It fails to secure an industry minimum farm gate price for milk that ensures farmers can cover production costs and earn a fair income;
- While it does require a minimum price be included in each contract, it does not guarantee that that price should be above production costs;
- It also allows agreed milk prices to be reduced by processors “in exceptional circumstances”, which are not clearly defined and leaves farmers with ongoing insecurity about their income.
Senator Hanson has vowed to keep pushing for improved laws through her Saving Australian Dairy Bill, which has been rejected twice in the Senate by Liberal and National senators.
She has campaigned for the introduction of a fair farm gate price that is determined by the ACCC to allow farmers to remain viable and the industry to remain strong. She has not campaigned for a return to full regulation.
“Costs differ to produce milk in each region, and that’s why it should be up to the ACCC to determine how much it is to produce milk in those regions, investigated twice a year,” she said.
“What happened years ago was the Government subsidised the dairy industry – both state and federal – and that is not what I am asking for now.
“I am asking for the processors to pay a fair farm gate price to the dairy farmer; that is, the production cost and profit, which they’re not getting at the moment, which is passed on.
“It’s the consumer that pays the price, not the government.”
Australians have already made it clear that they will pay more for milk in the knowledge it would help to sustain the dairy industry.
The mandatory code will be introduced from January 1, with a review of its effectiveness and impact to be conducted after 12 months.
“It’s now a case of wait and see how destructive the code is and how many farmers will continue to call it a day and exit the industry,” Senator Hanson said.
“I imagine by about March we’ll have a good idea about how damaging this code actually is.”
The code gives authority to the ACCC to ensure code compliance by farmers and processors.
Senator Hanson rejected suggestions that a farm gate price would breach international trade agreements.
END
This release has been distributed to media outlets in the Canberra Press Gallery and around Australia.
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