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Milk War Threatens Dairy Industry

31 January 2011

AUSTRALIA - Coles and Woolworths will destroy the Australian dairy industry if they continue with their "unfair" milk price war, warns Independent Senator, Nick Xenophon.

He acknowledged the decision last week of both major retailers to slash the price of fresh milk to as little as $1 a litre – below cost – would be attractive to consumers in the short-term, according to Adelaide Now.

But Senator Xenophon said fresh milk would ultimately become a "niche item" as milk producers were squeezed out of business by declining profit margins. He said this would leave Australia reliant on imported UHT long-life milk.

"There will be no winners in the price war," Senator Xenophon said, accusing both Coles and Woolworths of "pushing around the little end of town."

Senator Xenophon called upon the Australian Competition and Consumer Commission (ACCC) to investigate whether their behaviour was anti-competitive."The ACCC needs to get on its bike and tell us what it's doing about this," he said.

TheCattleSite News Desk

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