There have been a couple of significant shifts from the 10 priorities outlined following the consultation phase of the Australian Dairy Plan.
Based on the priorities released after the national workshop, the top priority of the plan was to be: “New measures to increase transparency and help manage market risk including the establishment of a functioning milk price market and new risk measures backed by government legislation”.
That priority seems to have all but disappeared, incorporated into the final point: “We will restore trust and transparency between farmers, processors and retailers to improve supply chain profitability and better manage volatility and risks.”.
Elaborating, the Key Directions Statement instead focuses on what it describes as processors and farmers currently working together on simplified payment systems and longer-term contracts.
This, along with the new mandatory code of conduct, will support more uniformity and transparency, it says.
In relation to the former second-only-to-structural-change priority, the key directions document simply says: “We commit to building on these initiatives to restore trust and transparency between farmers, processors and retailers to help improve supply chain profitability and better manage volatility and risks.”
“We will look to learn from other dairy markets to improve transparent pricing and risk management, but recognise we will need initiatives that align with the Australian dairy industry and its culture of private enterprise and entrepreneurialism.”
The Key Directions Statement also emphasises positive messaging, greater commitment to marketing from the whole supply chain and improving farm business management to lift profitability.
The issues of drought and climate change listed in the original 10 priorities are not mentioned.
The draft Australian Dairy Plan is due at the end of the month and promises to “include specific initiatives supporting the delivery of the plan and opportunities for growth”.
There will be further industry consultation before the final Australian Dairy Plan is released by the end of February 2020.
