The mandatory dairy code of conduct will be a reality in early 2020.

The agreement between farmers and processors aims to deliver greater transparency, and fairness in contract negotiations.

Agriculture Minster Bridget McKenzie told Macquarie’s Rural Reporter Eddie Summerfield, while the code won’t be retrospective, processors are being warned about signing farmers up to contracts before the it is implemented.

“I wrote to processors last week putting them on notice that this is not something just hatched up in the last three weeks,” Senator McKenzie said.

“They have known this code has been coming, and for them to be signing contracts now that are not in the spirit of the mandatory code I’ll be taking a very dim view of that.”

The code was a key recommendation from the ACCC inquiry into the sector stemming from the 2016 dairy crisis.

“We’re outlawing retrospective step downs which we saw out of the issues with MG and Fonterra in particular,” she said.

The third and final consultation period closes on the 22nd of November.

Listen to the full interview, where the conversation covers the mandatory code, the Farm Household Allowance, and the Government’s future drought

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