Scott Morrison and the ACCC take aim at the dairy industry 11

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Federal Treasurer Scott Morrison has asked the Australian Competition and Consumer Commission (ACCC) for a full inquiry into Australian’s dairy industry. The main focus will be on the dairy prices that continue to hurt farmers.

In a statement, the ACCC said, “The ACCC’s inquiry is broader than the price cuts issue, and we will not focus solely on a particular trader”. It continued “The ACCC will examine how the whole industry operates.” Key issues include competition between milk processors, contracting processes, the availability of price and other market information, the effect of private-label products on the industry, supply to global markets, and factors influencing the profitability of dairy farms.

“The ACCC is seeking feedback from interested parties on issues across all product and geographical markets in the Australian dairy industry”. The statement concluded with say, “The inquiry will closely examine the key competition and fair trading issues affecting the dairy industry.”

What effect this inquiry will have on dairy prices in the shops is yet to be seen. However, it is a good sign that the ACCC is looking after out farmers by looking into this situation.

What do you think about it? Is it too little too late for some of the dairy farmers? Or is this the type of thing that the Treasurer should be focusing on?

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  1. Your headline seems to be misleading! It implies that Scott Morrison is going to damage the daily industry, but the body of the story seems imply that the long-suffering dairy farmers may actually benefit from the inquiry. Which is the truth?

    3 REPLY
    • yeah – I thought the same thing at first.

    • Headline maybe misleading, but with the track record of Scomo probably the industry will go the way of the car industry.

  2. Too little, too late? Investigation should have happened when Coles and Woolworths started their price war for $1 per litre milk. Cutting profits, OK. Cutting prices to the producers, not OK. Our dairy farmers go out of business, their farms get sold to the Chinese, Australian dairy exported to Asia, leaving us with imported crap not meeting our health standards.

    3 REPLY
    • Agree 100/ now that the biggest milk producing farm in Australia has been sold to the Chinese government decided let’s look at it one wonders who are they working for

    • Ria you are so correct. The negative impact of that decision by Coles and Woolworths has been well documented over a longgggg time. Milk is an item on nearly everyone’s shopping list, especially families. It should have received attention much soon than now.

  3. As a dairy farmer back in 1999 there were around 2000 dairys in Queensland an we were getting 59.8cents per litre. 17 years on and today we get around 56 cents per litre if we are lucky barely enough to break even all we need is 70 cents per litre so we are viable to keep going

  4. The ministers will talk the talk but do sweet F A. The supermarkets force the farmers to take less money with the threat “we will buy elsewhere”. When the farmers go broke the government allow foreign ownership of the land. As it is owned direct or indirectly by a foreign government and or businesses. Foreign ownership foreign workers and all financial transaction are through overseas foreign banks. No tax paid to the A T O.

  5. I hope this enquiry finds that this is the cruellest of all the abuse industries, taking babies from their mothers at five days old and sending them to slaughter, hungry and terrified. This industry should be shut down for good.

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