More questions were raised than answered at a senate inquiry into the dairy industry on Tuesday, says United Dairyfarmers of Victoria president Adam Jenkins.
Mr Jenkins said while there was a general agreement across the dairy supply chain to improve current arrangements, there was a clear “need for the ACCC’s broader inquiry”.
The Economics References Committee heard from processors and retailers in Melbourne as part of its investigation into milk price cuts made by Murray Goulburn and Fonterra in April.
Committee members also questioned the $1 litre milk contracts between processors and retailers, Coles and Woolworths.
“There was no answer around what impact the $1/L milk has,” Mr Jenkins said.
MG chairman Philip Tracy said the co-operative was reviewing its milk price payment mechanism and would ensure milk price transparency into the future.
“The review will determine whether (current arrangements are) fit for purpose amid ongoing volatility in commodity markets,” Mr Tracy said.
Results from the inquiry are due February next year.
Dennis shares his views
Well-known Scenic Rim dairy farmer Greg Dennis spoke at the inquiry and live streamed his statement on Facebook.
