Susan McDonald (Queensland, National Party) Share this | Hansard source

This government supports our Australian dairy farmers and fundamentally believes that they must be paid a fair farmgate price for their milk. Dairy is Australia's third-largest rural industry, with almost 5,700 dairy farms, most of them family owned and operated, producing $4.3 billion last year at the farm gate. It is true that dairy farmers are facing challenging times, with higher costs of input during this drought, particularly around grain and electricity prices, and those costs are higher again for Queensland dairy farmers. Right now, the opening farmgate prices for milk are rising, and they are helping to improve confidence in the industry. Some processors have announced step-ups for the current milk season. Let's be clear: in 1999, the dairy industry came to government asking for deregulation, and the government complied. Government does not support the re-regulation of the dairy industry, because industry does not want re-regulation. I draw your attention to today's media releases from the Australian dairy organisation and the National Farmers' Federation.

As a government, we're working hard to ensure a strong and robust dairy industry now and into the future. During the election, the Liberal-National government announced a range of commitments to assist dairy farmers, including $10 million to help farmers reduce their energy costs through improved infrastructure and equipment; $1.5 million to Dairy Australia and Australian Dairy Farmers to support increased price transparency through advanced contracting and milk marketing tools; and the development of a mandatory code of conduct, just like we delivered the Sugar Code of Conduct for our Australian sugar cane farmers.

Let's not forget that this government is focused on achieving new markets for our farmers. Our track record on free trade helped our world-renowned dairy farmers to export 36 per cent of their production last year, and we are working to get our farmers new and improved access. These export markets are crucial. Not only do they provide another market opportunity but they boost competition for our farmers' products, which, in the context of the Woolworths-Coles-dominated supermarket structure, is important in driving better pricing for our farmers. This is what we're doing for all of our agricultural industries. Whether you produce fruit, vegies, meat or milk, as a government, we're working for you.

But can we do more? I think we need to look at the impact of the market power of retailers in order to prevent unfair bargaining practices in the agrifood supply chain. Across the board, unequal bargaining power, right through from the retailer to the processor and the farmers, is indirectly affecting farmgate prices. We are bringing forward Federal Court divestiture powers as a penalty for companies and corporations engaging in misconduct in the energy market, and I think it is time we give the ACCC the right powers to deal with repetitive and unfair bargaining practices by retailers. Addressing these issues holistically makes more sense for the longevity of the entire agricultural sector. This will help our farmers as they continue to push through the challenges—disease, market disruption, product perishability, drought, fire and flood. On that note, we will continue to stand with our drought affected farmers and regional communities.

The government has announced over $7 billion in measures to help drought affected farmers across Australia, including dairy farmers, facing hardship. Our government's drought plan is designed to provide immediate action, support for the wider communities affected and longer term resilience and planning. The farm household allowance gives income support to farming families, helping them meet costs for basic household necessities while they're in hardship. We've also topped up the Drought Community Support Initiative, which provides a grant of up to $3,000 per family to help with bills.

In closing, I think our dairy farmers are among the best in the world. I'm proud to be part of a government taking holistic action when it comes to our agricultural industries. We will continue to stand with our farmers and fight for their right to fair prices. I'm looking forward to working with my colleagues to address any challenge that keeps our farmers from doing what they do best, which is producing the world's best food and fibre to the world's highest standards.