Sharman Stone MP

Labor supports Coalition motion to deal with milk pricing

May 13, 2011

In Federal Parliament yesterday, the Labor party supported a Coalition private member’s bill which highlighted the problems of Coles’ milk pricing strategy for dairy farmers.

Federal Member for Murray, Dr Sharman Stone welcomes Labor’s recognition that the milk prices are bad news for farmers which ultimately affects customers.

“The Labor party supported the motion that acknowledged that dairy farmers across the country are doing it tough and many will be driven to question their future if returns don’t cover more than costs,” Sharman Stone said.

“It is ridiculous to have the duopoly of Coles and Woolworths selling milk cheaper than bottled water.

“Obviously many want cheap food but it may come at a terrible cost of no home grown option. We regularly hear of the problems of imported food, a consequence of contaminations and different standards of food safety overseas. Surely no nation would willingly go down that track.

“The price wars of the big supermarkets aimed at killing off competition and squeezing a bigger market share for themselves means more imported food as they squeeze Australian farmers out of business.

“The private members motion called on the government to ask the Australian Competition and Consumer Commission (ACCC) to immediately examine the behaviour of the big supermarkets and milk wholesalers to ensure that they do not use excessive market power and are not behaving in an anti-competitive way,” Sharman Stone said.