Tough stance on milk wars

By JONATHON HOWARD

THE Queensland Dairyfarmers’ Organisation (QDO) has applauded moves from Independent MPs recently that would toughen the competition laws governing the major supermarkets, with emphasis on halting the devastating impacts on the dairy industry from cut-price milk.
Independent MP Rob Oakeshott has proposed laws that would strengthen the anti-competitive behaviour rules governing the supermarkets, while Member for Kennedy, Bob Katter, has proposed laws that would forcibly pressure the supermarkets to reduce their market dominance progressively over a number of years.
QDO President Brian Tessmann said the legislative amendments proposed by Mr Oakeshott largely mirrored what the QDO and Australian Dairy Farmers had itself drafted and have long been lobbying for, but unfortunately with little response or appetite for action from the Federal Government.
“The QDO has long been advocating for the need for strengthening the rules around competition, as it is clear that the market has failed farmers with the supermarkets selling milk at the unsustainably low price of $1/litre, and causing downward pressure on farm-gate milk prices, which flies in the face of a booming world market and major step-ups in prices now being paid to dairy farmers supplying that export market. We welcome Mr Oakeshott grabbing that baton and running with it.
“With a large dairy farmer constituency, Mr Oakeshott clearly understands the importance the industry has for his local economy – just as it is so important for so many regional Queensland areas,” Mr Tessmann said.
“We have lost 80 farmers from the Queensland industry since the milk war began, causing a loss of $240 million in investment in fresh milk production and more than 240 jobs on farm, along with many more jobs lost by processors and other parts of the value chain.
“Clearly, these laws and government action are both badly needed.”
Mr Tessmann said the QDO also welcomed proposed laws from Mr Katter, who similarly represented the important dairying region on the Atherton Tableland.
“Alongside Senator Nick Xenophon and Independent Andrew Wilkie in a press conference this week, Mr Katter has again highlighted the need for action to halt the damage being caused to the domestic fresh milk industry and dairy farmers that produce that fresh milk for Australian consumers every day of the year.”
This follows Mr Katter’s tabling of a Bill to utilise the Fair Work Act to provide fair farm-gate prices to dairy farmers who produce drinking milk.
Mr Tessmann said the state’s dairy farmers called on all politicians to make their positions clear, ahead of the September election.
“The QDO is continuing to advocate for a mandatory code of conduct and an ombudsman with real power, and have lobbied for this in Canberra this week. We now await a decision and action on these bills from the independent MPs, and clear policy positions from the government and Opposition.”