Queensland dairy farmers have been granted approval to use their Fair Go dairy licensing scheme for five years.
The approval from the ACCC allows the Queensland Dairyfarmers’ Organisation Ltd (QDO) to use the ‘Fair Go Dairy’ logo on qualifying dairy products provided they contain at least 80 per cent unprocessed milk produced by Queensland dairy cows and purchased from a Queensland dairy farmer for more than or at a price the QDO considers as ‘fair’.
QDO is a not-for-profit advocacy organisation representing dairy farmers across Queensland and the ACCC considers the scheme will result in “a small degree of public benefit” which would outweigh any potential competition concerns from the branding.
“The scheme is likely to give consumers more information about the price paid to the farmers supplying the milk for participating products. It may also be a useful tool for dairy processors to signal to consumers what they are paying Queensland farmers,” said ACCC deputy chair Mick Keogh.
QDO has calculated a minimum price of 73.8 cents per litre processors have to pay farmers in order to participate in the scheme in 2021/22.
The ACCC says that to date, no major milk processors in Queensland have indicated they will participate in the scheme, which will be launched during the coming months.
QDO had sought authorisation from the ACCC because participants in the scheme would likely be competitors which could lead to a breach of the Competition and Consumer Act. ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Act.