That this House: (1) notes with concern the impact on the Dairy Industry
of the Coles milk pricing strategy and that: (a) dairy farmers around the
country are today seriously questioning their future having suffered through one
of the worst decades
in memory including droughts, floods, price cuts and rising cost
of inputs such as energy and feed; (b) unsustainable retail milk prices will, over time, compel processors to renegotiate contracts with dairy farmers and the prospect that these contracts will be below the cost
of production may force many to leave the industry; (c) the fact that supermarkets are now selling milk cheaper
than many varieties
of bottled water will be the straw that finally breaks the camel's back for many dairy farmers; and (d) the risk
of other potential impacts includes: (i) decreased competition as name brands are forced from the shelves; and (ii) the possible loss
of fresh milk supplies to some
parts of the
country as local fresh milk industries become unviable; and (2) calls on the
Government to: (a) ask the ACCC to immediately examine the big supermarkets and milk wholesalers after recent price cuts to ensure they do not have too much market power and are not anti-competitive
in their behaviour; and (b) support the new Senate inquiry into the ongoing milk price war between the
country's major supermarket chains».