Image: New Zealand Mount Taranaki, Curious looking cow with a volcano in the background
The ACCC has released it’s final report on the performance of the dairy industry and the structural and behaviour features which contribute.
The results have found that one of the significant imbalances in bargaining power at each level of the dairy supply chain.
The ACCC has identified a range of failures that have resulted from the power imbalance and information asymmetry in the relationships between farmers and processors.
In response, the ACCC has eight recommendations for transparency and awareness of commercial risk.
The ACCC recommended that a mandatory code of conduct be introduced to address the identified market failures.
To view the report in full- https://www.accc.gov.au/system/files/1395_Dairy%20inquiry%20final%20report.pdf