The Dairy Code of Conduct is largely aimed at resolving the problems initiated by Murray Goulburn five years ago when it retrospectively cut the price it paid farmers for their milk in an announcement that has shaped the industry. It is yet to be a complete solution. It addresses the relationship between farmers & the processor but fails to address problems forced back down the chain from the retail level.
A full suite of alternative pricing mechanism structure models need to be looked at. Dairy farmers are very exposed to fodder prices in times of drought. The drought levees added by supermarkets was only added after considerable public pressure & the whole amount was not passed on. There needs to be a better mechanism to ensure a drought levee is implemented in a more-timely fashion, if a new overall pricing model is not found that factors in the extra input costs in times of drought.
The Green Shirts Movement is standing up for the Australian Dairy industry.