Australian dairy industry

Industry Commission inquiry report

This report was signed by the Commissioners on 26 September 1991 and subsequently released by the Commonwealth Government. The report contains the findings of the Industry Commission's public inquiry.

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  • Preliminaries
    • Cover, Copyright, Signing Page, Terms of Reference, Contents, Abbreviations, Overview and Recommendations
  • 1 Introduction
    • 1.1 Origin and scope of the inquiry
    • 1.2 What the Commission was required to do
    • 1.3 Conduct of the inquiry
    • 1.4 Structure of the report
  • 2 Australian dairy industry characteristics
    • 2.1 Size and structure of the dairy industry
    • 2.2 Industry organisations
    • 2.3 Markets for dairy produce
    • 2.4 Marketing arrangements
    • 2.5 Farm characteristics
    • 2.6 Relative costs of producing milk in selected countries
  • 3 The world market for dairy products
    • 3.1 Charateristics of the world market for dairy products
    • 3.2 Policies of the major producing and consuming countries
    • 3.3 Australia-New Zealand Closer Economic Relations Trade Agreement
    • 3.4 Multilateral trade negotiations
    • 3.5 International dairy arrangement
    • 3.6 Distorted world prices: implications for providing assistance
    • 3.7 Conclusion
  • 4 State arrangements for market milk
    • 4.1 Regulating the supply and prices for market milk
    • 4.2 Health and safety standards
    • 4.3 Quality standards
    • 4.4 Promotion of fresh milk
    • 4.5 Efficiency effects of supply and price contrlos for market milk
    • 4.6 Proposals for change by State governments and industry
    • 4.7 Sourcing fresh milk by commercial contracts
    • 4.8 Conclusion
  • 5 Commonwealth marketing arrangements
    • 5.1 The Kerin Plan arrangements for manufacturing milk
    • 5.2 Market support levy and payments
    • 5.3 Domestic prices and producer transfers
    • 5.4 Intra-industry transfers
    • 5.5 Efficiency costs of increased prices fro manufactured milk
    • 5.6 Marketing milk prices and interstate trade
    • 5.7 Conclusion
    • 5.8 Other Commonwealth influences over dairy marketing
  • 6 Australian Dairy Corporation
    • 6.1 Objective and operations of the Australian Dairy Corporation
    • 6.2 Administering the market support and underwriting arrangements
    • 6.3 Industry information services
    • 6.4 Generic promotion
    • 6.5 Export marketing
    • 6.6 Austdairy
    • 6.7 Australian dairy industry fund
    • 6.8 Industry loan service
  • 7 Other forms of assistance to the dairy industry
    • 7.1 Tariffs
    • 7.2 Cheese tariff quota
    • 7.3 Underwriting
    • 7.4 Environmental issues
  • 8 Measured assistance to the dairy industry
    • 8.1 Purpose of measuring assistance
    • 8.2 The Commission's estimates
    • 8.3 Criticisms of the Commission's estimates
    • 8.4 Policy implications of the estimates
  • 9 Implementation and effects of the Commission's recommendations
    • 9.1 Objectives of the recommendations
    • 9.2 Implementation
    • 9.3 Effects of implementing the recommendations
    • 9.4 Conclusion
  • Appendices
  • A Public particpation in the inquiry
    • A1 Submissions received
    • A2 Industry Visits
    • A3 Attendance at Assistance Measurement Workshop
    • A4 Participants at Public Hearings
  • B Selected dairy industry statistics
  • C Details of state marketing arrangements
    • C1 New South Wales
    • C2 Victoria
    • C3 Queensland
    • C4 Western Australia
    • C5 South Australia
    • C6 Tasmania
    • C7 Australian Capital Territory
    • C8 Northern Territory
  • D Request for and advice from the Attorney-Generals Departrment
  • E Details of Commonwealth marketing arrangements
    • E1 Legislation
    • E2 Milk levies
    • E3 Market support payments
    • E4 Supplementary market support payments
  • F Assistance to the Australian dairy industry
    • F1 Assistance provided by the Kerin Plan
    • F2 Assistance provided by State Government control of supply and pricing of milk
    • F3 Nominal rates of assistance to milk production and dairy manufacturing industries
    • F4 Effect rates of assistance to production of milk and manufacture of dairy products
  • G Estimating the effects of implementing the Commission's recommendations
    • G1 Analytical framework
    • G2 The simulations
    • G3 Estimated impacts of the proposed reforms
    • G4 Conclusions
  • References