WAFarmers Calls For Govt Action Over Milk Pricing

AUSTRALIA - The Western Australian Farmers Federation (WAFarmers) is calling for the Federal Government to intervene against Coles’ milk pricing strategy amid disappointment that the final report by the Senate Economics References Committee did not recommend any immediate action.
calendar icon 3 November 2011
clock icon 1 minute read

WAFarmers Dairy Section President, Peter Evans, said that the evidence put forward by the report clearly demonstrated that the transition from branded to private label milk has been passed on to producers in certain States.

“This report fails to recognise that in some states, including in Western Australia, farmers are paying the price for Coles’ discounting strategy, and we need the Federal Government to take immediate and decisive action,” said Mr Evans.

“Coles’ price cuts are unsustainable, and the evidence proves this. WAFarmers is calling on the Government to provide assistance before more dairy farmers leave the industry.”

The Senate Committee recommended that the Government commission a study of the dairy industries in Western Australia, Queensland and New South Wales, focusing on the future sustainability of the dairy industry and its ability to meet future local customer demand.

“While WAFarmers does support this recommendation, the dairy industry cannot afford to wait for months while another study is undertaken before any action occurs,” said Mr Evans.

“There are steps that can be taken straightaway, such as implementing a supply chain code of conduct or strengthening the Competition and Consumer Act 2010, and the Federal Government should be undertaking these immediately.”

WAFarmers will continue to lobby for fair pricing strategies that do not lead to reductions in the commodity prices paid to local farmers.

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