Dairy farmers urged to support Collective Bargaining Group

3/12/02
Agriculture Minister Kim Chance has urged dairy farmers to avail themselves of the opportunity to be involved in collective bargaining with milk processing companies.
The inaugural meeting of the Western Australian Dairyfarmers Collective Bargaining Group will be held tomorrow and Mr Chance has urged farmers to become involved in the negotiating process.
The Minister said a professional and united negotiating approach was the key to dairy farmers working with processors to achieve a balanced future economic outcome for all parties in the marketplace.
The Australian Competition and Consumer Commission (ACCC) determination on collective bargaining within the dairy industry has afforded protection to farmers choosing to conduct collective negotiations with dairy companies from prosecution under the Trade Practices Act.
"The determination, made earlier this year, recognised the fact that individual farmers have little market power compared with the giant diary processors and retailers," Mr Chance said.
"It also acknowledged that dairy farmers have a bigger investment in the industry than other participants and legitimised their role in helping to determine milk prices.
"Having won this determination it is now important that farmers actively participate in the process of collective negotiation to ensure they have a future role in price determination."
The inaugural meeting of the Collective Bargaining Group, to be held in Boyanup tomorrow night, will include the election of the negotiation committee enabling the group to start negotiating with processors.
"WA farmers have improved their market power by taking a stake in manufacturing through Challenge Co-op and involvement in the Collective Bargaining Group represents an important opportunity for them to negotiate with processors on equal terms," Mr Chance said.
Minister's office: 9213 6700