Oz co-op consolidates Tassie holding
Murray Goulburn has bought Mitsubishi Corporation's remaining 24.1% in Tasmanian Dairy Products Co Pty Ltd (TDP) for A$4.8 million, taking 100% ownership.
Australian Dairy Farmers president Chris Griffin is extremely disappointed with the senate inquiry into the impact of supermarket price decisions on the dairy industry.
"While dairy farmers are leaving the industry the senate committee has recommended four reviews, one study and one consultation process. We need action," Griffin says. "This cut-throat discounting by Coles has now been going on for nine months and it is time the Government took action to stop it. This is the second inquiry in two years. The time for talking is over, we need action.
"We know what the issues are, we know this cutthroat discounting ultimately flows on to the farmers and their families and we know the UK Competition Commission had to take legislative action to re-balance the market power of the supermarkets over there."
Griffin says the government must take action to balance the unfair market power of the two big supermarkets and provide fairness and transparency along the supply chain.
The senate report, released this month, made seven recommendations, including:
That government review the effectiveness of collective bargaining laws and arrangements for agricultural industries with a view to strengthening that framework to create a more equitable balance of power between the negotiating parties.
That processor's contracts with dairy farmers "should offer a clear, consistent formula for milk pricing with unambiguous conditions" and "not be dependent on the final retail sales of branded versus private label milk". This was to address the case of Parmalat suppliers in Queensland who received a smaller milk cheque when branded sales fell as a result of Coles discounting their house brand milk.
A government study of the dairy industries in Queensland, NSW and Western Australia to focus on the sustainability of the industry and examine possible policy options.
An independent review of the competition provisions of the Competitions and Consumer Act 2010. This was because the effectiveness of Australia's competition laws has been raised in the context of various sectors and has been considered by this committee on numerous occasions.
A review of the effectiveness of the Produce and Grocery Code Ombudsman and to consult on whether a new statutory office to address supply relationships in the grocery sector is needed.
Griffin says the Government had to take action to balance the unfair market power of the two big supermarkets and provide fairness and transparency along the supply chain.
He says Coles and Woolworths have unparalleled market power that is not replicated anywhere else in the world. The top five supermarket chains in the United Kingdom have about 80% of the market, the same as Coles and Woolworths in Australia.
"This cannot be good for competition in the long term and is definitely not good for the supermarkets' suppliers."
