Dairy farmers urged to use new mandatory code: Thompson

The upcoming season will be the first time processors are required to disclose the minimum farmgate milk price, after the mandatory code created new rules for farmers and processors in January this year.

NSW Farmers Dairy Committee chair, Cowra's Colin Thompson says the code was developed to create greater equity between farmers and processors, so it is incumbent on farmers to know their rights and obligations under the code before arrangements are made with processors for the year ahead.

"We fought hard for the code and for it to become mandated, and we also fought to ensure it delivers meaningful change for farmers. Farmers need to familiarise themselves with the code so they are doing everything within their power to ensure they're receiving a fair deal," he said.

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"The code is important as it restricts unilateral decision making by processors, which in the past has created uncertainty for farmers.

"The requirement that processors publish all supply agreements on their websites will also create accountability for processors in honouring their agreements with farmers."

Mr Thompson says that a farmgate price drop at the moment would be devastating for dairy farmers, despite decent rainfall in parts of the state.

"We hope that the new milk price agreements recognise the challenges dairy farmers have faced over recent years, like protracted periods of low rainfall and heavily discounted retail prices on dairy products," he said.

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"Dairy farmers have also lost the ability to negotiate with processors face to face due to coronavirus related restrictions, so hopefully we haven't been disadvantaged in the lead up to the new season.

"The drought has not broken, and it will take a long time for farmers to recover. A price drop at the moment would be a serious impediment to moving forward."