In a report from April, it was disclosed that Saputo, a major milk processor, had sold its Laverton factory in Victoria and Erskine Park plant in New South Wales to Coles for a hefty sum of $105 million, pending regulatory approval from the Australian Competition and Consumer Commission (ACCC).

The ACCC is poised to render its verdict on Thursday, September 14, after deliberating whether to grant approval, voice opposition, or impose additional stipulations on this high-profile deal.

Amid the suspense surrounding this decision, Rick Gladigau, a South Australian farmer and President of the Australian Dairy Farmers (ADF) lobby group, expresses hope for the ACCC's opposition to the transaction.

'Our concerns are losing transparency, losing the bargaining power and imbalance it can create for the farmer, and losing competition,' he said.

Farmers claim the sale will give supermarkets more power over the farmgate price. Credit: Shutterstock.

In July, the consumer watchdog asserted that Coles' acquisition of the Victorian facility was unlikely to diminish market competition. However, ACCC Deputy Chair Mick Keogh expressed concerns about a possible reduction in competition for raw milk in the state.

'It's a first for a supermarket to be involved in processing to this extent—and to have that degree of capacity can result in significant changes in the market,' he said.

'These plants are very important in terms of the total processing capacity available, particularly in New South Wales.'

The ACCC was also concerned that Saputo, one of Australia's major dairy processors, might withdraw from the fresh milk market in NSW, potentially increasing the market power of the supermarket giant.

NSW Farmers' Dairy Chair Phil Ryan is among those expressing fears over the results of Coles' acquisition. He said that if the bid goes through, some farmers could go out of business due to the potential reduction in the farmgate prices they receive for their milk.

'We've seen, with dollar-a-litre milk, the damage that has done to the dairy industry, and those concerns are still front of mind for many farmers,' he said.

'That competitive struggle for milk is a very advantageous and necessary thing for farmers in NSW to remain profitable and sustainable into the future.'

When asked about the farmers' concern, Coles Chief Executive Leah Weckert said industry fears can be assuaged.

She said: 'From Coles' perspective, we see no lessening of competition in any relevant market, noting that Coles already acquires approximately 80 per cent of the volumes at the facilities and will provide milk processing service to Saputo Dairy Australia under a tolling arrangement.'

'We remain confident that any outstanding concerns can be addressed so that the proposed transaction can proceed to completion. We will continue to work constructively with the ACCC on these issues.'

What does this deal mean for the average shopper?

If the acquisition is successful, it will see a supermarket owning and operating its own milk processing facilities, which could reduce the variety of local and smaller processor milk on the shelves.

Key Takeaways

• The Australian Dairy Farmers (ADF) lobby group is urging the Australian Competition and Consumer Commission (ACCC) to block the sale of two milk factories to supermarket giant Coles.
• Saputo sold its Laverton factory in Victoria and Erskine Park plant in New South Wales to Coles for $105 million, subject to regulatory approval.
• The ADF's concerns stem from losing transparency, bargaining power, and competition due to Coles' ownership.
• The ACCC is expected to make its decision on September 14.

Members, what are your thoughts on this announcement? Do you believe that Coles' acquisition of the two milk processing facilities might have a negative impact on the dairy market? Please feel free to comment below!

 

[Jest]

the mighty dollar strikes again.

 

[GranniCaz]

In a report from April, it was disclosed that Saputo, a major milk processor, had sold its Laverton factory in Victoria and Erskine Park plant in New South Wales to Coles for a hefty sum of $105 million, pending regulatory approval from the Australian Competition and Consumer Commission (ACCC).

The ACCC is poised to render its verdict on Thursday, September 14, after deliberating whether to grant approval, voice opposition, or impose additional stipulations on this high-profile deal.

Amid the suspense surrounding this decision, Rick Gladigau, a South Australian farmer and President of the Australian Dairy Farmers (ADF) lobby group, expresses hope for the ACCC's opposition to the transaction.

'Our concerns are losing transparency, losing the bargaining power and imbalance it can create for the farmer, and losing competition,' he said.

View attachment 29427

Farmers claim the sale will give supermarkets more power over the farmgate price. Credit: Shutterstock.

In July, the consumer watchdog asserted that Coles' acquisition of the Victorian facility was unlikely to diminish market competition. However, ACCC Deputy Chair Mick Keogh expressed concerns about a possible reduction in competition for raw milk in the state.

'It's a first for a supermarket to be involved in processing to this extent—and to have that degree of capacity can result in significant changes in the market,' he said.

'These plants are very important in terms of the total processing capacity available, particularly in New South Wales.'

The ACCC was also concerned that Saputo, one of Australia's major dairy processors, might withdraw from the fresh milk market in NSW, potentially increasing the market power of the supermarket giant.

NSW Farmers' Dairy Chair Phil Ryan is among those expressing fears over the results of Coles' acquisition. He said that if the bid goes through, some farmers could go out of business due to the potential reduction in the farmgate prices they receive for their milk.

'We've seen, with dollar-a-litre milk, the damage that has done to the dairy industry, and those concerns are still front of mind for many farmers,' he said.

'That competitive struggle for milk is a very advantageous and necessary thing for farmers in NSW to remain profitable and sustainable into the future.'

When asked about the farmers' concern, Coles Chief Executive Leah Weckert said industry fears can be assuaged.

She said: 'From Coles' perspective, we see no lessening of competition in any relevant market, noting that Coles already acquires approximately 80 per cent of the volumes at the facilities and will provide milk processing service to Saputo Dairy Australia under a tolling arrangement.'

'We remain confident that any outstanding concerns can be addressed so that the proposed transaction can proceed to completion. We will continue to work constructively with the ACCC on these issues.'

What does this deal mean for the average shopper?

If the acquisition is successful, it will see a supermarket owning and operating its own milk processing facilities, which could reduce the variety of local and smaller processor milk on the shelves.

Key Takeaways

• The Australian Dairy Farmers (ADF) lobby group is urging the Australian Competition and Consumer Commission (ACCC) to block the sale of two milk factories to supermarket giant Coles.
• Saputo sold its Laverton factory in Victoria and Erskine Park plant in New South Wales to Coles for $105 million, subject to regulatory approval.
• The ADF's concerns stem from losing transparency, bargaining power, and competition due to Coles' ownership.
• The ACCC is expected to make its decision on September 14.

Members, what are your thoughts on this announcement? Do you believe that Coles' acquisition of the two milk processing facilities might have a negative impact on the dairy market? Please feel free to comment below!

Suppliers primarily , and consequently consumers targeted by corporate greed enabled by a disconnected regulatory body.

 

[Ian Crane-Luff]

In a report from April, it was disclosed that Saputo, a major milk processor, had sold its Laverton factory in Victoria and Erskine Park plant in New South Wales to Coles for a hefty sum of $105 million, pending regulatory approval from the Australian Competition and Consumer Commission (ACCC).

The ACCC is poised to render its verdict on Thursday, September 14, after deliberating whether to grant approval, voice opposition, or impose additional stipulations on this high-profile deal.

Amid the suspense surrounding this decision, Rick Gladigau, a South Australian farmer and President of the Australian Dairy Farmers (ADF) lobby group, expresses hope for the ACCC's opposition to the transaction.

'Our concerns are losing transparency, losing the bargaining power and imbalance it can create for the farmer, and losing competition,' he said.

View attachment 29427

Farmers claim the sale will give supermarkets more power over the farmgate price. Credit: Shutterstock.

In July, the consumer watchdog asserted that Coles' acquisition of the Victorian facility was unlikely to diminish market competition. However, ACCC Deputy Chair Mick Keogh expressed concerns about a possible reduction in competition for raw milk in the state.

'It's a first for a supermarket to be involved in processing to this extent—and to have that degree of capacity can result in significant changes in the market,' he said.

'These plants are very important in terms of the total processing capacity available, particularly in New South Wales.'

The ACCC was also concerned that Saputo, one of Australia's major dairy processors, might withdraw from the fresh milk market in NSW, potentially increasing the market power of the supermarket giant.

NSW Farmers' Dairy Chair Phil Ryan is among those expressing fears over the results of Coles' acquisition. He said that if the bid goes through, some farmers could go out of business due to the potential reduction in the farmgate prices they receive for their milk.

'We've seen, with dollar-a-litre milk, the damage that has done to the dairy industry, and those concerns are still front of mind for many farmers,' he said.

'That competitive struggle for milk is a very advantageous and necessary thing for farmers in NSW to remain profitable and sustainable into the future.'

When asked about the farmers' concern, Coles Chief Executive Leah Weckert said industry fears can be assuaged.

She said: 'From Coles' perspective, we see no lessening of competition in any relevant market, noting that Coles already acquires approximately 80 per cent of the volumes at the facilities and will provide milk processing service to Saputo Dairy Australia under a tolling arrangement.'

'We remain confident that any outstanding concerns can be addressed so that the proposed transaction can proceed to completion. We will continue to work constructively with the ACCC on these issues.'

What does this deal mean for the average shopper?

If the acquisition is successful, it will see a supermarket owning and operating its own milk processing facilities, which could reduce the variety of local and smaller processor milk on the shelves.

Key Takeaways

• The Australian Dairy Farmers (ADF) lobby group is urging the Australian Competition and Consumer Commission (ACCC) to block the sale of two milk factories to supermarket giant Coles.
• Saputo sold its Laverton factory in Victoria and Erskine Park plant in New South Wales to Coles for $105 million, subject to regulatory approval.
• The ADF's concerns stem from losing transparency, bargaining power, and competition due to Coles' ownership.
• The ACCC is expected to make its decision on September 14.

Members, what are your thoughts on this announcement? Do you believe that Coles' acquisition of the two milk processing facilities might have a negative impact on the dairy market? Please feel free to comment below!

Coles will do what it wants to do purely out of self-interest and if damaging other producers is the outcome it would see this as a benefit, The company is totally without principals and lacks moral integrity, it's time corporate laws were changed to give equal importance to the suppliers and customers as the current laws gives to shareholders

 

[Pat T]

If their supermarket prices can jump +% so they make $mmm profit when purchasing from outside suppliers, what could they do when they hold the monopoly on a staple item?

 

[Shane/#]

In a report from April, it was disclosed that Saputo, a major milk processor, had sold its Laverton factory in Victoria and Erskine Park plant in New South Wales to Coles for a hefty sum of $105 million, pending regulatory approval from the Australian Competition and Consumer Commission (ACCC).

The ACCC is poised to render its verdict on Thursday, September 14, after deliberating whether to grant approval, voice opposition, or impose additional stipulations on this high-profile deal.

Amid the suspense surrounding this decision, Rick Gladigau, a South Australian farmer and President of the Australian Dairy Farmers (ADF) lobby group, expresses hope for the ACCC's opposition to the transaction.

'Our concerns are losing transparency, losing the bargaining power and imbalance it can create for the farmer, and losing competition,' he said.

View attachment 29427

Farmers claim the sale will give supermarkets more power over the farmgate price. Credit: Shutterstock.

In July, the consumer watchdog asserted that Coles' acquisition of the Victorian facility was unlikely to diminish market competition. However, ACCC Deputy Chair Mick Keogh expressed concerns about a possible reduction in competition for raw milk in the state.

'It's a first for a supermarket to be involved in processing to this extent—and to have that degree of capacity can result in significant changes in the market,' he said.

'These plants are very important in terms of the total processing capacity available, particularly in New South Wales.'

The ACCC was also concerned that Saputo, one of Australia's major dairy processors, might withdraw from the fresh milk market in NSW, potentially increasing the market power of the supermarket giant.

NSW Farmers' Dairy Chair Phil Ryan is among those expressing fears over the results of Coles' acquisition. He said that if the bid goes through, some farmers could go out of business due to the potential reduction in the farmgate prices they receive for their milk.

'We've seen, with dollar-a-litre milk, the damage that has done to the dairy industry, and those concerns are still front of mind for many farmers,' he said.

'That competitive struggle for milk is a very advantageous and necessary thing for farmers in NSW to remain profitable and sustainable into the future.'

When asked about the farmers' concern, Coles Chief Executive Leah Weckert said industry fears can be assuaged.

She said: 'From Coles' perspective, we see no lessening of competition in any relevant market, noting that Coles already acquires approximately 80 per cent of the volumes at the facilities and will provide milk processing service to Saputo Dairy Australia under a tolling arrangement.'

'We remain confident that any outstanding concerns can be addressed so that the proposed transaction can proceed to completion. We will continue to work constructively with the ACCC on these issues.'

What does this deal mean for the average shopper?

If the acquisition is successful, it will see a supermarket owning and operating its own milk processing facilities, which could reduce the variety of local and smaller processor milk on the shelves.

Key Takeaways

• The Australian Dairy Farmers (ADF) lobby group is urging the Australian Competition and Consumer Commission (ACCC) to block the sale of two milk factories to supermarket giant Coles.
• Saputo sold its Laverton factory in Victoria and Erskine Park plant in New South Wales to Coles for $105 million, subject to regulatory approval.
• The ADF's concerns stem from losing transparency, bargaining power, and competition due to Coles' ownership.
• The ACCC is expected to make its decision on September 14.

Members, what are your thoughts on this announcement? Do you believe that Coles' acquisition of the two milk processing facilities might have a negative impact on the dairy market? Please feel free to comment below!

A major supermarket chain shouldn't be able to do this as I see it could lead to a monopoly in the milk market and we all know who gets screwed over the farmers bloody wrong

 

[Macarj]

If their supermarket prices can jump +% so they make $mmm profit when purchasing from outside suppliers, what could they do when they hold the monopoly on a staple item?

There are many brands of milk in supermarkets I would imagine if coles buy these facilities and get rid of other brands of milk customers wouldn't be happy

 

[Cheezil]

So many good comments here! Supermarkets just cant be trusted!
Rich get richer & greedier!

 

[Lolali]

Horrible, just despicable!