Australian dairy industry under the ACCC microscope

Competition between milk processors, contracts between processors and farmers, global supply markets and the profitability of dairy farms will all be examined by the Australian Competition and Consumer Commission over the next 12 months under directions from the Australian Government.

Both processors and retailers will be compelled to participate as the formal dairy industry inquiry examines the key competition and fair trading issues affecting the dairy industry.

Key issues to be considered include:

• 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.

“The ACCC will hold public forums in a number of dairy producing regions so we can speak with dairy farmers about their concerns, and we will release further information about these forums in the coming months,” ACCC Commissioner Mick Keogh said.

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

The issues paper, terms of reference and further information about the inquiry are available at Dairy Inquiry.

This inquiry is separate to the ACCC investigations relating to the cuts to the price paid to dairy farmers for milk solids, announced by Murray Goulburn and Fonterra Australia.