East Gippsland dairy farmers may face uncertainty following proposed changes to the regulation of Victoria’s dairy sector.
The Victorian Farmers Federation United Dairy Farmers of Victoria (VFF UDV) has confirmed it will not support the
absorption of Dairy Food Safety Victoria (DFSV) into Safe Food Victoria without
the business case the Victorian Government promised, showing clear benefits for
the dairy industry.
VFF UDV acting president Ian Morris said the industry has consistently opposed
the reform.
“The dairy industry has never supported this proposal,” he said.
“We were assured the modelling and
analysis underpinning the reform would
be shared with industry. That has not occurred, yet legislation has now been introduced to Parliament.”
Mr Morris highlighted that DFSV has successfully operated as a specialist,
fully cost-recovered regulator for more than 20 years, underpinning export confidence and dairy safety. Its 2024–25 Annual
Report notes net assets of approximately $6.09 million, reserves built from industry revenue to manage regulatory risks.
“These funds were generated by dairy to support dairy regulation,” he said.
“If structural reform proceeds, there must be absolute clarity about how dairy-derived funds are protected and how costs are allocated under any new framework.”
The VFF UDV also opposes a proposed three percent increase to dairy licence fees for 2026–27, arguing it is premature while the regulatory structure remains uncertain.
“At a time of seasonal pressure and r
ising costs, increasing fees without clarity about future arrangements would be premature,” Mr Morris said.
While the VFF UDV supports practical improvements in regulatory coordination, it insists reforms of this scale must be evidence-based and demonstrably benefit Victorian dairy farmers.
The organisation is calling on the Victorian
Parliament to exclude dairy from the
first stage of reform, allowing proper
consultation and assessment before any structural change proceeds.
For East Gippsland farmers, the message is clear: any changes to dairy regulation
must protect the industry’s investment, maintain safety and export confidence, and ensure equitable cost recovery.
