Code Of Practice Welcome
Another outcome of Minister Joyce’s 2016 dairy symposium has materialised this week with a collective signing by processors of the Code of Practice for Contractual Arrangements (the Code). Burra fully supports the Code and finds nothing in it offensive; it will not change our practices in the commercial relationship with our supply partners. We do welcome the Code and see that it is an opportunity for all dairy farmers to have a more transparent and standardised commercial relationship with their factory.
It’s important to note that the Code applies to “standard short-form agreements” which could be regarded as standard supplier terms. As our industry gets more diverse it is recognised that there may be specific agreements with farming enterprises that would not be classified as a standard short-form agreement. Nevertheless, this “baseline” should be welcomed by the industry and seen as a productive outcome of government guidance.