The Australian government has completed the deregulation of the dairy industry – a process began in 1999 – with the enactment of the Dairy Adjustment Levy Termination Bill.
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The Bill terminates the Dairy Adjustment Authority and the Dairy Adjustment Levy, and winds up the Dairy Structural Adjustment Fund.
The issue of deregulation of the dairy industry was the subject of debate and inquiry over several years, the Australian Senate said this week. It concluded that “sooner rather than later the market will force deregulation and that a managed outcome with a soft landing is preferable to a commercially-driven crash”.
Therefore, the Senate devised a structured process to deregulate the industry, which supported dairy producers in the transition to deregulation and facilitated adjustment.
These provisions included a levy, set at A$0.11 (US$0.07) per litre, which was paid to eligible producers. No exact date has been set for the termination of the levy.
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By GlobalData“The move to terminate the Dairy Adjustment Levy has been welcomed on the grounds that it should lead to a reduction in milk prices by 11 cents a litre,” the Senate said in a statement.
Queensland Dairyfarmers’ Organisation president Wes Judd was reported as stating that “the move [to terminate the Dairy Adjustment Levy] was expected. This is just part of the process of winding up the package”.
