The
Dairy Adjustment Authority (DAA) was established under the Dairy Industry
Adjustment Act 2000 in April 2000 to administer applications and make
determinations under the Dairy Structural Adjustment Program (DSAP) Scheme.
In July 2001, the Dairy Produce Legislation Amendment (Supplementary
Assistance) Act 2001, provided the legislative framework for the DAA
to administer additional assistance measures to dairy producers under
the Supplementary Dairy Assistance Scheme.
The Dairy Structural Adjustment Program and Supplementary Dairy Assistance
are the Federal Government's response to the dairy industry's request
for support as the dairy industry adjusts to the fully deregulated milk
market which became effective on 1 July 2000.
Why do
we need this package?
The removal
of dairy farm-gate milk price regulatory arrangements in Australia represents
the single biggest adjustment process of any rural sector. A structural
adjustment package of this size is necessary to allow farmers to manage
their transition to production in a deregulated milk price environment.
This adjustment
package will lead to better industry performance which will assist maintenance
of, and in the long term increase, job opportunities and wealth in regional
dairying areas. The package will deliver a major boost to rural and
regional communities through a direct capital injection to dairy farmers
in rural communities over eight years. The package will assist communities
more broadly through the flow on effects of farmer incomes remaining
higher than they would have been otherwise in the absence of a package.
This will assist in maintaining the dairy enterprises and the jobs these
provide, as well as other industries which service the dairy industry.