Queensland Dairyfarmers’ Organisation Limited

Summary

On 25 September 2020, the Queensland Dairfarmers Organisation (QDO) lodged an application for authorisation for a licensing scheme for processors of milk and dairy products to apply a “Fair Go Dairy” logo to their products. The logo is intended to signal to consumers that the products bearing the mark are made from milk for which farmers have been paid a sustainable and ‘fair’ farmgate price (known as the SFFP). The products which can display the logo include dairy milk, dairy cream, dairy desserts and cheese.

Under the licensing scheme QDO will grant a license to use the “Fair Go Dairy” logo to processors for use on dairy products made using no less than 80% unprocessed milk purchased from a farmer where:

  • the farmer’s farm is located within Queensland
  • the milk is derived from dairy cows located within Queensland
  • the purchase price for the milk (per litre) is not less than the SFFP, and
  • no milk used in the products may be sourced from outside of Australia.

The SFFP is determined by QDO using a formula for the Cost of Production multiplied by the CPI Adjustment Rate. The Cost of Production means the average cost of production for milk published by the Queensland Dairy Accounting Scheme. Further details on how the SFFP is set can be found in the application.

QDO seeks authorisation for a period of 10 years.

A full copy of the application for authorisation is available below.

QDO has also requested interim authorisation at the time of the ACCC’s draft determination to continue to continue to prepare and commence marketing of the scheme, and to negotiate, enter into, and give effect to license agreements with milk processors.

The ACCC invites submissions on the substantive and interim authorisation requests by 23 October 2020. Further detail on how to make a submission is in the consultation letter below.

Timetable

25 September 2020

Lodgement of application and supporting submission.

2 October 2020

Public consultation process begins.

23 October 2020

Closing date for submissions on interim and substantive authorisation.

November 2020

Applicant responds to issues raised in the public consultation process.

December 2020

ACCC draft determination including consideration of interim authorisation.

January 2021

Public consultation on draft determination including any conference if called.

February/March 2021

Final determination.

Applicant(s)

  • Queensland Dairyfarmers’ Organisation Limited

Authorisation number(s)

  • AA1000530-1