Mr Littleproud is looking at how to revamp rules around supermarket contracts with processors, with the aim of strengthening market pricing options for processors and farmers.
Reform proposal details are likely to be released by February and expected to receive sympathetic backing from federal cabinet.
"The fact is the milk market needs real reform. It's not working,” he said.
“Supermarkets can no longer wash their hands and claim the fact farmers are going broke is nothing to do with them” - David Littleproud, Agriculture Minister
Processors were intimidated by the bargaining strength of retailers, while farmers had few bargaining options with anybody in the supply chain.
His move, in consultation with key dairy sector players, follows recent agreement for a mandatory code of conduct between producers and dairy processors.
Mr Littleproud said the milk market was clearly broken and the big supermarkets could no longer “wash their hands and claim the fact farmers are going broke is nothing to do with them”.
“I've already begun work on a mandatory code of conduct for the sector since dairy farmer groups called for it, but much more reform is needed.
Mr Littleproud is looking at how to revamp rules around supermarket contracts with processors, with the aim of strengthening market pricing options for processors and farmers.
Reform proposal details are likely to be released by February and expected to receive sympathetic backing from federal cabinet.
"The fact is the milk market needs real reform. It's not working,” he said.
“Supermarkets can no longer wash their hands and claim the fact farmers are going broke is nothing to do with them” - David Littleproud, Agriculture Minister
Processors were intimidated by the bargaining strength of retailers, while farmers had few bargaining options with anybody in the supply chain.
His move, in consultation with key dairy sector players, follows recent agreement for a mandatory code of conduct between producers and dairy processors.
Mr Littleproud said the milk market was clearly broken and the big supermarkets could no longer “wash their hands and claim the fact farmers are going broke is nothing to do with them”.
“I've already begun work on a mandatory code of conduct for the sector since dairy farmer groups called for it, but much more reform is needed.
After a week of verbally savaging supermarkets over their milk pricing tactics and drought publicity “stunts”, Agriculture Minister David Littleproud, has flagged major milk market reforms are in the wind in a bid to bring the powerful retailers to heel.
Mr Littleproud is looking at how to revamp rules around supermarket contracts with processors, with the aim of strengthening market pricing options for processors and farmers.
Reform proposal details are likely to be released by February and expected to receive sympathetic backing from federal cabinet.
"The fact is the milk market needs real reform. It's not working,” he said.
“Supermarkets can no longer wash their hands and claim the fact farmers are going broke is nothing to do with them” - David Littleproud, Agriculture Minister
Processors were intimidated by the bargaining strength of retailers, while farmers had few bargaining options with anybody in the supply chain.
His move, in consultation with key dairy sector players, follows recent agreement for a mandatory code of conduct between producers and dairy processors.
Mr Littleproud said the milk market was clearly broken and the big supermarkets could no longer “wash their hands and claim the fact farmers are going broke is nothing to do with them”.
“I've already begun work on a mandatory code of conduct for the sector since dairy farmer groups called for it, but much more reform is needed.
