The scheme, proposed by Queensland Dairyfarmers’ Organisation, was granted final authorisation by the Australian Competition and Consumer Commission on March 21.
Under the scheme, QDO will grant processors a licence to use the Fair Go Dairy logo on qualifying dairy products.
These products must contain at least 80 per cent unprocessed milk that was produced by Queensland dairy cows and purchased from a Queensland dairy farmer for more than or at a price QDO considers as ‘fair’.
In their application to the Australian Competition Tribunal, the ADPF, which represents processors from across the country, voiced concerns about the impact of the scheme.
“…It will directly affect the feasibility of ADPF’s members ability to process and provide dairy products, which includes restricting the ability of ADPF’s members in Queensland to offer dairy products to customers; misleading the consumer as to what is a fair price for a dairy product and impacting competition between processors and could distort the dairy market in Queensland and Australia more broadly (including consumer and retailer choice of dairy products).”
The ADPF said it has voiced its concerns to the ACCC through consultation and provided three written submission on September 26, 2020, January 29, 2021 and February 5, 2021.
In an email to members, QDO executive officer Eric Danzi said it was “disappointing” the scheme has been delayed by the review process.
“This has further delayed Fair Go Dairy and means that the Australian Competition Tribunal must now review the decision by the ACCC to grant QDO authorisation,” he said.
“It is unclear how long the review process will take but until it has been completed QDO is now not permitted to run the launch campaign.
“To say that this further delay is disappointing is a major understatement.”
The scheme was due to launch in June.