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Retailers Pressure Suppliers to Cut Dairy Prices

09 July 2012

AUSTRALIA - Reports in the media suggesting that supermarket giant, Woolworths, is pressuring suppliers to cut milk prices is concerning Australian farmers.

Reports suggest that Woolworths is looking to suppliers to cut their prices to help fund Woolworths’ battle with competitor, Coles. Suppliers have been threatened that their products will be removed from Woolworths’ stores if the demands are not met.

The Western Australian Farmers Federation (WAFarmers) President, Dale Park, said this was not the direction that supermarkets should be moving, in terms of pricing.

“I have called for greater transparency in supermarket pricing and all the major supermarket chains need to buy in to this principle,” Mr Park said.

“Farm input costs are raising as well as production costs in the supply chain and it seems that some retailers expect farmers and suppliers to bear the brunt of these costs.

“Quite simply, any cuts to prices from suppliers will impact on the farmgate price paid to farmers.”

Mr Park said dairy farmers were voting with their feet and leaving the industry due to low farmgate prices.

“WAFarmers is doing its best to ensure we fight to get a fair price for all farmers at the farmgate,” he said.

“The last thing Australia needs is decreasing farmgate prices in other commodities which could result in more farmers leaving the industry as we try to feed an increasing population.”

WAFarmers calls on Woolworths to provide greater transparency in its pricing and to look after farmers and producers in the supply chain.

TheCattleSite News Desk



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