Dairy raises alarm on industry regulator’s future

The peak national representative body for the Australian dairy industry is concerned the Victorian Government’s move to merge the state’s dairy food safety regulator puts the multi-billion dollar industry at risk.

The proposed reforms – part of a broader strategy to halve the number of business regulators by 2030 – would consolidate Dairy Food Safety Victoria (DFSV) with PrimeSafe, Agriculture Victoria and some Department of Health functions.

The Australian Dairy Industry Council (ADIC) argues this move could threaten decades of specialised, trusted food safety oversight in Victoria underpinning the state’s production of 63 per cent of the national milk pool.

ADIC Chair Ben Bennett said DFSV was a self-funded, stand-alone, cost recovery organisation, that did not cost taxpayers, while delivering huge value to dairy farmers and processors across the state.

"Unlike other food regulators, DFSV licenses thousands of dairy farmers across the state as well as dairy food processors,” Mr Bennett said.

Mr Bennett said ADIC would seek clarification from the Victorian Government on how it sees value in consolidating DFSV with the other organisations.

“Importantly, we want to understand how the government intends to do this without putting industry quality control, compliance, and consumer food safety at risk,” he said.

“ADIC is also concerned that a prominent driver of innovation would be removed from the industry, with DFSV having developed respected initiatives like the Dairy RegTech project, which enhances efficiency and compliance across the sector.

“We’re also concerned DFSV’s respected approach of industry-specific consultation informing regulatory measures could be placed on the chopping block.

“We call on the government to recognise the irreplaceable value DFSV provides to the Victorian dairy industry, maintain its role as an independent regulator focused on dairy food safety, and ensure farmers and processors have meaningful opportunity to influence the proposed changes.”
ADIC urged the government to reconsider its approach and invites further discussions to address these concerns. 

ADIC deputy chair John Williams said DFSV’s success stems from its deep understanding of the multi-billion dollar industry.

Without this specialised focus, ADIC Deputy Chair John Williams said the unique needs of dairy farmers and processors could be overlooked and ADIC feared this could lead to weakened confidence in the food safety system.

“Victoria’s dairy industry is built on a foundation of trust, safety and quality,” Mr Williams said.
“We cannot afford to jeopardise the standards that ensure Victorian dairy products are among the safest and most sought after in the world.”

Mr Bennett pointed out the proposal could lead to on-farm audits being conducted by inspectors unfamiliar with the nuances of dairy operations, creating uncertainty and inefficiencies for farmers and processors.

“The Victorian dairy industry deserves a regulatory body that understands its challenges and opportunities,” Mr Bennett said.

“We call on the Victorian Government to remove DFSV from the proposal and safeguard the innovative and effective frameworks it has established.”

ENDS