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].
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].
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].
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].
The government did implement some dairy-related initiatives, but these fell substantially short of what was promised:
1. **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.
2. **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.
3. **Milk Value Portal (2021-2022):** An information portal displaying farmgate milk price data, operated by the Australian Dairy Products Federation [8].
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.
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].
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].
The original 2019 announcement by Minister David Littleproud is documented in multiple sources and represents the government's own official statements [1] [2] [3].
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.
**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].
Feeding Australia Initiative:** Labor committed $3.5 million to develop a collaborative approach bringing together farmers and food supply stakeholders [12].
**4.
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 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].
Several possible explanations (though the government never provided official justification):
1. **Technical/Implementation Challenges:** Building a functioning dairy trading platform may have proven more complex or expensive than anticipated.
2. **Industry Resistance or Lack of Uptake:** If farmer interest or industry participation was insufficient, the project may have stalled.
3. **Competing Priorities:** The government may have deprioritized this project in favor of other dairy support measures.
4. **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].
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.
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.
However, the claim's framing as simply breaking a promise without context is somewhat incomplete:
1. **TRUE:** Coalition made a clear, specific promise (May 2, 2019)
2. **TRUE:** Promise was not delivered by the February 2020 deadline or by 2022
3. **TRUE:** Government was evasive when challenged in Parliament
4. **PARTIALLY TRUE:** Government did implement alternative dairy support measures, though they fell short of what was promised
5. **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.
However, the claim's framing as simply breaking a promise without context is somewhat incomplete:
1. **TRUE:** Coalition made a clear, specific promise (May 2, 2019)
2. **TRUE:** Promise was not delivered by the February 2020 deadline or by 2022
3. **TRUE:** Government was evasive when challenged in Parliament
4. **PARTIALLY TRUE:** Government did implement alternative dairy support measures, though they fell short of what was promised
5. **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.