TFGA calls on supermarkets to end sham milk price

Tasmanian farmers today challenged the major supermarket chains to return retail milk prices to the level where dairy farmers will not be bankrupted when the inevitable happens: their wholesale price is reduced accordingly.

Tasmanian Farmers and Graziers Association chief executive Jan Davis said it was inevitable the supermarkets, led by Coles, would sacrifice farmers by reducing the price they were paid for their milk to the point where many across the country would be forced out of business.

“This is the real price that we are all going to have to pay if the chains persist with this war of attrition that is not aimed at helping its customers but is intended to increase each other‘s market share,” she said.

“Supermarkets are prepared to sell milk at a loss just to get people into the store, to get foot traffic into the shop to spend more money on other goods.”

Ms Davis said that while Coles had been the initiator of the price war, the others had fallen into step.

“So what they are all saying is that dairy farmers are acceptable collateral damage in the pursuit of unsustainable market share in the wider grocery sector. That is morally corrupt,” she said.

“To sell milk for a dollar per litre is unsustainable. They might as well give it away for free. The end result is the same because it defies logic to think that the supermarkets will absorb these losses. It will be passed on to consumers in price rises on other goods while dairy farmers will be paid less for their milk.”

Ms Davis said the TFGA called on all chains to show integrity to their customers and loyalty to Australia’s dairy farmers by refusing to continue this bizarre game.

“At the same time we ask consumers to support their local dairies and milk producers to demonstrate their solidarity with farmers.”