The Australian Competition and Consumer Commission’s dairy inquiry found all contracts for milk supply allow processors to pass-through movements in farm gate prices to supermarkets.
“Dairy processors need to be honest with farmers. We have written to a number of processors warning them not to mislead farmers by blaming private label milk contracts for the prices offered for milk at the farmgate,” ACCC chair Rod Sims said.
“We’re concerned this is misleading as the power lies with processors to raise the farmgate price paid to farmers, and then pass these higher farmgate prices on to supermarkets.”
Farmers sell products to dairy processors who process and package the product, before onselling to supermarkets for sale to consumers.
The ACCC’s warning comes after an 18-month inquiry into the industry, with the findings released in April.
Full Content: The Australian
