Glenn Lazarus (Queensland, Palmer United Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Agriculture, Senator Abetz. Australian farmers are doing it tough. In my home state of Queensland over 75 per cent of the state is drought declared. Food security is a national issue and one which the federal government should be protecting and promoting. Since the commencement of the Coles-initiated milk price war in 2011 some 100 dairy farmers in Queensland have been forced to close their businesses. What is the government doing to protect the interests of dairy farmers in Australia?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

The Leader of the Palmer United Party in the Senate is quite right to draw attention to the difficulties being faced in the rural sector, and today he has particularly referred to the dairy sector. Whenever the primary sector is faced with drought, there are, of course, very real problems, because they are often price takers; and no matter how hard they work or how efficient they are, they are subject to the vagaries of the weather. That, of course, does put them in some extreme difficulties and that is why, as a government, we do have drought relief policies and other assistance to try to assist the rural community generally.

In relation to the dairy farmers per se, I would draw the Leader of the Palmer United Party's attention to the good work of my colleague, the Minister for Trade and Investment, Andrew Robb. The two free trade agreements that he has been able to negotiate with Japan and South Korea will see a huge surge in export potential for our dairy sector. That helps to create new competitive markets, and it is one of the pillars, if I may say, of our agricultural policy. It is one of our strengths and we are playing to one of those strengths in the dairy sector. In my home state of Tasmania, we are assisting the dairy sector, in a roundabout way, by offering support to Cadburys. An extra 6000 dairy cows will be required for its expansion, which will see an extra 20,000 tonnes of chocolate being exported from Tasmania to South-East Asia.

Christine Milne (Tasmania, Australian Greens) Share this | Link to this | Hansard source

You still have not paid them a cent.

Glenn Lazarus (Queensland, Palmer United Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given the importance of the dairy farming industry in Australia and the need for Australia to be able to access fresh, high-quality and locally-produced dairy products, it is imperative that the interests of Australian farmers are protected. What is the government doing to address and stop the predatory practices of large and powerful supermarket chains which negotiate unfair and unjust contract with farmers—contracts that clearly undermine the survival and success of Australian farmers?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

I think many Australians do wonder, when they go to the supermarket, why a bottle of water costs more than the equivalent volume in milk. People are quite right to question that. However, in relation to these operations within the marketplace, it is the view of successive governments that the best approach to these matters is not necessarily to have the ham-fisted approach of government, but to have regulatory authorities undertake the task of ensuring that no undue market pressure is brought to bear. That is why we have the ACCC. Whether the ACCC is performing its tasks sufficiently in that area is a matter of community debate, I understand. It is an appropriate debate in a free country like ours to have matters—(Time expired)

Glenn Lazarus (Queensland, Palmer United Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. The government says a lot of things are happening, including reviews, but really all of this means nothing unless there are real solutions and positive outcomes for Australian farmers. Will the government consider developing a mandatory code of conduct to cover the whole domestic dairy supply chain?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

I have just been advised that on 6 August the Treasury released a draft food and grocery code consultation paper for public comment. I would suggest to the good senator that often it is good to get community consultation, to liaise with the community, to ensure that you come to a proper landing on some of these vexed issues. That is what we as a government, from the agriculture and Treasury portfolios, are seeking to do in this space—which is clearly a vexed space—but we want to ensure that there is genuine justice for the dairy farmer, for the retailer and, most importantly, for the consumer. That is the landing we are trying to achieve, and with community consultation and this review we hope we will be able to achieve such an outcome.