Coles and Woolworths destroy morale of Dairy Farmers
January 27, 2011
The price slashing of Coles and Woolworths fresh milk shows a clear disregard for the plight of dairy farmers In Northern Victoria.
Dr Sharman Stone, Federal Member for Murray, said the last thing dairy farmers need right now is an indication that prices may go belly up in the future.
“While Coles and Woolworths at this point are assuring suppliers that this price cutting will not affect what they pay at the farm gate, the reality is that this could be the thin edge of the wedge.
“With the first price slashing being fresh milk, it is only a step away from slashing the price of cheeses, creams, yogurt and others.
“Given that no one buys more fresh milk just because the price is a little lower, you have to wonder why Coles would have led the charge in destroying the morale of Dairy farmers in Queensland and Victoria, right at this part of their greatest flood stress.
“Either these companies are completely out of touch and have no idea what is going on in the back yards of their own suppliers or they have just grown so big and arrogant that they don’t care.
“While some locals may appreciate getting their milk a little cheaper, the problem is when we destroy competition we destroy the capacity of our own farms to produce milk, that’s when you will see milk being imported from other places, particularly UHT, and everyone is the looser.
“Coles and Woolworths should stop their nonsense of the milk price war right now and give some better sense of long term price stability and indeed even farm gate price rises for Australian dairy farmers who produce some of the best quality milk in the world,” Sharman Stone said.