Supermarket criticism tops dairy forum frustrations

The 15-plus attendees comprised about half a dozen farmers, joined by aspiring and sitting politicians, with the topic of how to make the industry more viable.

There was wide agreement the sector had been rocked by deregulation and supermarket price wars, one farmer saying they needed "to be able to take some power away from supermarkets".

Industry participant Milton Christian organised the forum; he'd like to see farm gate prices increase from about 40c to $1 a litre.

Senator John Williams, the most senior politician at the event at Tamworth's Oxley Bowling Club, said there was "no silver bullet" to achieve that.

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He said some relief could come from a federal mandatory code of conduct, which is at regulation-drafting stage; cutting electricity costs; possible interest rate drops; and, with half of Australia's milk exported, a drop in the exchange rate.

The code aims for more "fairness and transparency" between farmers and processors, and includes no retrospective price cuts; farmers still getting earned loyalty payments if they switch processors; and a resolution process in contract disputes.

But seventh-generation farmer Jamie Drury said of the code: "None of those things are actually a very big issue for us" and the code needed "to go into supermarket behaviour".

Senator Williams said it was "still under discussion" and invited ideas - "if we don't get it right ... it's not going to be effective" - promising to raise it in the party room.

The Nationals senator repeatedly spoke of the importance of bringing down power prices - a key tenet of his party's policies.

However, fourth-generation dairy man Brian Wilson said: "We've kind of been told for about 19 years since deregulation that we have to look at our costs, and as dairy farmers we're probably a bit over that."

Nor were processors to blame, in the view of a couple of speakers, Mr Drury saying: "I don't agree with the likes of Alan Jones, who is wholeheartedly against the processors. Those guys are losing money like we are on white milk sales."

Three candidates for the seat of Tamworth - Country Labor's Stephen Mears, independent Mark Rodda and Shooters, Fishers and Farmers' Jeff Bacon - also attended and spoke.

Opposition agriculture spokesman Joel Ftizgibbon was an apology due to transport issues; so was New England MP and special drought envoy Barnaby Joyce due to attendance at a similar forum in Tasmania.