Australia’s domestic market must be as fair as possible to allow both large and small business to compete. The considerable amount of work, investment, planning and risk required to produce, transport, process, distribute and deliver a perishable product, fresh milk, on a daily basis is not reflected by the major retailer price of milk at $1 per litre. This is distorting the market.
If left unchecked, the actions of the major retailers in squeezing the supply chain ultimately will lead to a substantial lessening of competition in the market place, a significant impact on the viability of branded dairy products, less product variety on supermarket shelves, less choice for customers and in the long term, higher prices for consumers.
Since the introduction of $1-litre-milk in Australia on 26 January 2011, Australian Dairy Farmers (ADF) has vocally advocated against the unsustainable impact the major retailers’ cost-slashing measures are having back to farm gate. ADF has been instrumental in bringing this issue to the public’s agenda and welcomes the Australian Competition and Consumer Commission’s (ACCC) recent court rulings and investigations against the major retailers.
We endorse the review of competition laws that the Federal Government has commenced and urge the implementation of changes necessary to balance market power.
- Establish a Mandatory Code of Conduct covering the whole supply chain to balance the market power of major retailers and appoint an Ombudsman with ‘teeth’ to ensure compliance.
- Improve Collective Bargaining arrangements for dairy farmers to strengthen their bargaining position, providing further balance in market power.
- Competition Policy Review
- Harper Review of the Competition Policy Review
- Food and Grocery Code of Conduct
- The Australian Competition Tribunal
- Agriculture, Resources and Environment Committee examination of the Milk Pricing (Fair Milk Mark) Bill 2013
- Collective Bargaining Notifications CB281 and CB282 lodged by Manning Valley dairy farmers
- ADIC: Inquiry into the impacts of supermarket price decisions on the dairy industry – March 2011