The ACCC is proposing to authorise the Queensland Dairyfarmers' Organisation Limited's Fair Go Dairy licensing scheme for five years.
Under the scheme, QDO will grant processors a licence to use the 'Fair Go Dairy' logo on qualifying dairy products, which must contain at least 80 per cent unprocessed milk produced by Queensland dairy cows and purchased from a Queensland dairy farmer for a price not less than a "sustainable and fair" price calculated by QDO.
Kerry dairy farmer Kay Tommerup said having an identifiable logo on milk products was a good idea.
"A lot of people who come to the farm say they want to help dairy farmers but they are confused about which milk to buy, which ones really help the farmers," she said.
"If the logo helps consumers make a choice based on supporting dairy farmers, it could lead to processors looking at price increases.
"Consumers have said they would happily pay more for milk if they knew it was helping the farmers."
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The ACCC's said the Fair Go Dairy Scheme was likely to result in some limited public benefits through small improvements in information and choice for consumers, and a small increase in retail competition in Queensland.
Deputy chair MIck Keogh said the ACCC recognised that some consumers wanted to know more about the dairy products they bought and how much dairy farmers were paid to produce them.
"If the scheme is authorised, it could be useful for those consumers, if they understand what the Fair Go Dairy logo conveys" he said.
"So far, none of the major milk processors in Queensland have indicated they will participate in the scheme, although several smaller processors have expressed interest."
The ACCC said it had also considered whether any public detriments will arise from authorising the scheme.
"We have considered whether the logo is likely to mislead consumers, reduce competition, increase retail prices for dairy products or reduce the incentive for farms to innovate," Mr Keogh said.
"We believe these outcomes are unlikely, although we are seeking further submissions from the public on possible harm that might arise from the scheme or the Fair Go Dairy Logo."
The ACCC also granted interim authorisation to QDO to allow them to immediately commence negotiations with milk processors and undertake marketing and planning for their proposed 'Fair Go Dairy' licensing scheme.
However, any resulting agreements could not be signed or come into effect until the ACCC's final determination.
The ACCC is seeking feedback on the impacts of the interim authorisation and the draft determination proposing to authorise the scheme for five years. More information, including the draft determination, interim authorisation decision, and details on how to make a submission are available at Queensland Dairyfarmers' Organisation Limited.
