Move to investigate cheap milk
THE federal Coalition has moved to investigate retail supermarket giants Coles and Woolworths, who are selling milk for $1 a litre, by passing a notice of motion that will be debated in parliament next week.
Proposed by Nationals member for Calare, John Cobb, and seconded by The Nationals Federal Member for Cowper Luke Hartsuyker, the motion will be debated with the aim of investigating the sustainability of the dairy industry, due to the current price wars.
There is genuine concern that branded dairy products will be forced from supermarket shelves as a result of this price war and in the end those products will be lost forever,” Mr Hartsuyker said.
“Competition is good for the consumer and good for business, but it is wrong for supermarkets to force competitors out of the marketplace through massive discounts where they can cross-subsidise their losses.”
Mr Hartsuyker said the aim of the motion was to bring to the Parliament’s attention the impact these price wars is having on the dairy industry and to highlight the threat the supermarkets pose to the long-term viability of many dairy farmers.
“The motion calls on the Government to refer this matter for investigation to the ACCC and to also support the recent Senate inquiry which was established into the milk price wars,” he said.