Queensland dairy farmers welcome the introduction of the effects test

Queensland Dairyfarmers’ Organisation (QDO) has today joined Australian Dairy Farmers (ADF) in welcoming the introduction of the s46 ‘effects test’ legislation 2016 into the Federal Parliament.

QDO has advocated strongly for the change since 2011, following Coles starting the supermarket Milk Price War which has seen many farmers forced out of our industry. 

QDO President, Brian Tessmann said the new provision will address the current unequal distribution of market power and encourage transparency to the benefit of producers, consumers and retailers.

“QDO has been very vocal in its support for the introduction of the ‘effects test’ as it is another tool to help provide integrity and transparency and deliver direct benefits to our Queensland members.”

“The effects test will benefit not only Queensland dairy farmers, but the entire small business sector is resolving issues around predatory pricing.”

“The ‘effects test’ is an essential component in the joint efforts towards restoring market fairness in the Queensland dairy industry.”

QDO thanked the Prime Minister, Deputy Prime Minister, the Treasurer, the Minister for Small Business for their support and action on this important reform and delivering up on their election commitment to introduce the Bill.

The introduction of an effects test is in line with competition policy around the world – Australia has joined the clear majority of developed nations who already have established effects tests.