Well, I was made to eat humble pie (flavour of the week) yesterday when I read the outcome of the ACCC report into the ‘milk wars’ between supermarkets earlier this year. Regular readers may remember I got a bit annoyed at Coles when the $1 per litre was announced.
The Age reports that, according to the ACCC, there’s no evidence that Coles has acted in breach of competition rules or engaged in predatory pricing. Also, importantly:
“As to the relationship between dairy farmers and milk processors, it is the case that some processors pay some farmers a lower farm gate price for milk sold as supermarket house brand milk.
“However on the evidence we’ve gathered over the last six months it seems most milk processors pay the same farm gate price to dairy farmers irrespective of whether it is intended to be sold as branded or house brand milk,” Mr Samuel said.
I’ll be watching to see dairy farmers’ response to the report, but it all still seems a bit hard to swallow.
[From in pastel’s photostream]