The Claim
“Broke an election promise about providing a trading system to help dairy farmers be more fairly compensated for milk production.”
Original Sources Provided
✅ FACTUAL VERIFICATION
The Original Promise (May 2, 2019)
The Coalition made a specific election promise during the 2019 campaign. On May 2, 2019, Agriculture Minister David Littleproud announced a commitment to develop a dairy trading platform. He stated: "Dairy farmers need more flexibility in how they sell milk – a new platform will give them more options, opportunities and flexibility" and promised to "strengthen dairy farmers hand in negotiations with processors" and provide "farmers more market power" [1].
The government committed $560,000 to the Australian Dairy Farmers (ADF) to facilitate development of this trading platform [2]. Additionally, the Coalition announced $300,000 for a real-time payment system using blockchain technology and $150,000 for standard form contract development, bringing the total dairy support funding to $22 million [3].
The government specified that the ADF would report back with findings by February 2020 [4].
Delivery Status
The promise was not delivered as made. The February 2020 reporting deadline was not met, and the platform was never developed as promised. Parliamentary records show that when Member for Gilmore Fiona Phillips raised this issue during Parliamentary Question Time, "Minister David Littleproud confirmed that the Morrison Government has failed to deliver election promises" regarding the real-time dairy payment system and trading platform [5].
Phillips noted in her media release: "During Parliamentary Question Time yesterday, Minister David Littleproud confirmed that the Morrison Government has failed to deliver election promises it claimed would provide a real time dairy payment system and a trading platform that would give dairy farmers more say over how and when they sell their milk" [5].
When pressed directly in Parliament about the promise, Minister Littleproud's response was evasive. Rather than confirming delivery or providing a timeline, he only stated that they were "working with" the Australian Dairy Federation on measures that would "complement the dairy code of conduct" [5]. Phillips responded: "Dairy farmers will be scratching their heads as to what the Minister's response actually means, particularly since it has been over 12 months since the election promise was made" [5].
What Was Delivered Instead
The government did implement some dairy-related initiatives, but these fell substantially short of what was promised:
Blockchain and Traceability Framework (2020): Led by ADF with CSIRO, this created a blockchain-based distributed ledger for recording contracts and payments [6]. However, this is a backend infrastructure system, not a farmer-facing trading platform.
Australian Milk Price Initiative (2019-2020): The government funded the "Bulk Milk Market" on the Mercari platform, providing spot market pricing and price transparency [7]. However, this is not the comprehensive futures/hedging/contract-swapping trading system that was promised.
Milk Value Portal (2021-2022): An information portal displaying farmgate milk price data, operated by the Australian Dairy Products Federation [8]. This provides price information only and does not give farmers the market power or trading flexibility that was promised.
Missing Context
While the claim is factually accurate regarding the broken promise, some important context includes:
1. Government Justification (Not Provided): The government never publicly explained why the platform was not delivered, why the February 2020 deadline was missed, or why implementation stalled. The evasive parliamentary responses suggest either the project was abandoned or faced unforeseen obstacles that the government was unwilling to discuss [5].
2. Scale of Commitment: The $560,000 commitment was relatively modest in the context of broader dairy support. However, the promise was specifically about a fundamental market-reform mechanism (trading platform), not just funding [3].
3. Industry Context: Australian dairy farmers have long faced structural challenges including significant bargaining power imbalances with milk processors. The Coalition acknowledged this, citing ACCC findings about "market failures due to strong imbalance in bargaining power" as justification for the trading platform [1]. This context explains why the promise was significant.
4. Labor's Comparable Commitments: Labor has focused on the Dairy Code of Conduct as the primary mechanism for ensuring fair farm-gate pricing, rather than promoting market-based trading platforms [9]. This represents a different approach rather than a shared commitment to the same goal.
Source Credibility Assessment
Fiona Phillips (Labor MP)
Fiona Phillips is the Member for Gilmore and represents a dairy farming electorate [5]. She is quoting directly from Parliamentary Question Time, which is an official government record. Her credibility is high for this factual statement about what was said in Parliament. However, as a Labor MP, she has political motivation to highlight Coalition failures.
The critical verification point is whether her parliamentary quotes are accurate. The fact that she is directly referencing Parliamentary Question Time makes this a primary source document rather than opinion. Her interpretation ("broken promise") is reasonable given the evidence, though framed from a Labor perspective critical of the government.
The Original Coalition Sources
The original 2019 announcement by Minister David Littleproud is documented in multiple sources and represents the government's own official statements [1] [2] [3]. This is primary source evidence. The government's own words establish the promise clearly.
Assessment
The sources are credible. The claim rests on:
- Government's own 2019 announcement (primary source)
- Parliamentary Question Time exchange (official record)
- Lab MP quoting the parliamentary record (derived from primary source)
While Phillips' framing is critical (as expected from Labor opposition), the underlying facts are documented in government sources and parliamentary records.
Labor Comparison
Search conducted: "Labor government dairy farmer commitments policy"
Labor has taken a different approach to dairy farmer support, emphasizing regulatory frameworks rather than market-based platforms:
1. Dairy Code of Conduct: Labor prioritizes fair trading code enforcement as the mechanism for farmer protection, rather than market-based trading platforms [9]. The Albanese Labor government launched a second review of the Dairy Code of Conduct to ensure fair practices [10].
2. Export Market Support: Labor focuses on developing export markets through free trade agreements (e.g., Australia-UAE Comprehensive Economic Partnership eliminating dairy tariffs, bringing dairy exports to record $3.7 billion in 2024-25) [11].
3. Feeding Australia Initiative: Labor committed $3.5 million to develop a collaborative approach bringing together farmers and food supply stakeholders [12].
4. No Equivalent "Trading Platform" Promise: Labor has not made comparable promises for a trading system or real-time payment platform. This appears to be a Coalition-specific proposal rather than a shared policy goal.
5. Historical Labor Government: The Rudd-Gillard Labor government (2007-2013) made different dairy policy choices, including dairy levy changes in 2008, but did not implement comparable trading platforms [13].
Comparative Assessment: Labor has not made or broken a directly equivalent promise about dairy trading platforms. The two parties take different approaches—Coalition emphasizing market mechanisms, Labor emphasizing regulatory/trade approaches. This is not a case of "both parties make and break these promises"; rather, this was a Coalition-specific initiative.
Balanced Perspective
The Government's Apparent Rationale
The Coalition framed the dairy trading platform as part of a broader response to ACCC findings about dairy industry market failures. Agriculture Minister Littleproud stated the initiative was designed to respond to "market failures due to a strong imbalance in bargaining power" [1]. The government believed that modern trading mechanisms (similar to those available in grains and other commodities) could help dairy farmers.
The government did attempt to address dairy concerns through multiple initiatives (blockchain framework, spot market platform, information portal), suggesting genuine effort to support the industry [6] [7] [8]. However, these initiatives did not match what was promised.
Why the Promise Was Not Kept
Several possible explanations (though the government never provided official justification):
Technical/Implementation Challenges: Building a functioning dairy trading platform may have proven more complex or expensive than anticipated.
Industry Resistance or Lack of Uptake: If farmer interest or industry participation was insufficient, the project may have stalled.
Competing Priorities: The government may have deprioritized this project in favor of other dairy support measures.
Regulatory/Code of Conduct Focus: The government may have shifted focus to the Mandatory Code of Conduct as the primary mechanism for addressing bargaining power imbalances [1].
The government's evasive parliamentary responses suggest they did not want to acknowledge the broken promise or provide reasons for non-delivery.
Important Agricultural Context
Dairy farming has faced significant structural pressures beyond government policy:
- Rising input costs (feed, labor, fuel)
- Climate extremes affecting production
- Consolidation of milk processors creating buyer power concentration
- International market competition
- Labor shortages in agricultural sectors
While a trading platform might have helped farmers manage market risk, it would not address these underlying structural challenges. Government support through other mechanisms (market access, regulatory frameworks, environmental support) may have been considered more impactful.
Industry Response
Notably, the Australian Dairy Farmers' Federation did not maintain aggressive pressure on the government to deliver the promised platform after 2019. Instead, they participated in alternative initiatives (blockchain framework, spot market). This suggests either:
- The industry accepted these alternatives as reasonable replacements
- The industry believed the promised platform was no longer viable
- The industry lacked confidence in its potential effectiveness
This softer industry response contrasts with the Labor criticism and suggests the industry itself may not have viewed the broken promise as catastrophic.
PARTIALLY TRUE
7.5
out of 10
The claim is factually accurate in identifying a broken election promise. The Coalition did commit in May 2019 to developing a dairy trading platform with specific funding ($560,000) and a delivery timeline (February 2020). This promise was not delivered as made, and parliamentary evidence confirms the government failed to deliver.
However, the claim's framing as simply breaking a promise without context is somewhat incomplete:
- TRUE: Coalition made a clear, specific promise (May 2, 2019)
- TRUE: Promise was not delivered by the February 2020 deadline or by 2022
- TRUE: Government was evasive when challenged in Parliament
- PARTIALLY TRUE: Government did implement alternative dairy support measures, though they fell short of what was promised
- CONTEXT: Neither party has made equivalent promises; this was Coalition-specific
The verdict is BROKEN PROMISE (factually true), but with the caveat that the government attempted alternative initiatives that fell short rather than doing nothing.
Final Score
7.5
OUT OF 10
PARTIALLY TRUE
The claim is factually accurate in identifying a broken election promise. The Coalition did commit in May 2019 to developing a dairy trading platform with specific funding ($560,000) and a delivery timeline (February 2020). This promise was not delivered as made, and parliamentary evidence confirms the government failed to deliver.
However, the claim's framing as simply breaking a promise without context is somewhat incomplete:
- TRUE: Coalition made a clear, specific promise (May 2, 2019)
- TRUE: Promise was not delivered by the February 2020 deadline or by 2022
- TRUE: Government was evasive when challenged in Parliament
- PARTIALLY TRUE: Government did implement alternative dairy support measures, though they fell short of what was promised
- CONTEXT: Neither party has made equivalent promises; this was Coalition-specific
The verdict is BROKEN PROMISE (factually true), but with the caveat that the government attempted alternative initiatives that fell short rather than doing nothing.
📚 SOURCES & CITATIONS (12)
-
1
David Littleproud - "Dairy farmers need more flexibility" statement (May 2, 2019)
A new "trading and marketing platform" for the dairy industry could be on the cards if the Coalition wins the upcoming Federal Election.
southburnett.com.au -
2
Coalition makes multi-million-dollar dairy industry pledge - Agriculture XPRT (May 8, 2019)
Agriculture-xprt
-
3
Australian Dairy Farmers welcomes opportunity to explore new dairy industry trading platform (May 1, 2019)
Australiandairyfarmers Com -
4
Fiona Phillips - Morrison Government fails to deliver election promises to Australia's dairy farmers (Parliamentary Question Time report)
Low farmgate milk prices, drought, bushfires and COVID-19 have put extreme pressure on our dairy farmers, yet the Morrison Government refuses to ensure our dairy farmers receive a fair farmgate price.
Fionaphillips Com -
5
David Littleproud - Dairy blockchain technology initiative (2020)
Minister Awe Gov
-
6
David Littleproud - Australian Milk Price Initiative and Bulk Milk Market on Mercari (2019-2020)
Minister Awe Gov
-
7
Milk Value Portal - Australian Dairy Products Federation (2021-2022)
The Milk Value Portal offers a single source of verified information on farmgate milk prices for Australian dairy farmers
Milk Value Portal -
8
Albanese Labor Government - Dairy Code of Conduct review (2023)
Minister Agriculture Gov
-
9
Second Review of the Dairy Code of Conduct - Department of Agriculture (2023)
Agriculture Gov
-
10PDF
Australia-UAE Comprehensive Economic Partnership - Dairy tariff elimination (2024)
Dfat Gov • PDF Document -
11
Feeding Australia Initiative - $3.5 million commitment (2024)
Minister Agriculture Gov
-
12
Rudd-Gillard Labor Government Dairy Policy - Parliamentary Library (2007-2013)
Aph Gov
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.