With the cost of living sky-high these days, there's no denying how much easier it is to shop online. You don't have to battle with the traffic, nor do you need to go out of your way to get to a particular store.

One of the added bonuses of buying groceries online is that you're free to leisurely compare and research prices—something we here at the SDC always do before checking out our shopping cart.

The ability to compare has been a blessing for countless regular shoppers, yet it also has advantages and disadvantages.

As we know, the more competition there is among goods and services, the more likely customers will get a better deal. However, if too much competition becomes a concern, this could negatively affect the market.

Concerns have been raised over a plan by Coles to buy two milk processing facilities. Credit: Shutterstock.

This is the situation that has come up for Australian farmers and shoppers alike in the wake of a proposed bid by Coles to buy two milk processing facilities in Victoria and New South Wales, which Canadian dairy company Saputo currently operates.

On the surface, it seems like Coles is just beefing up its business, but unfortunately, concerns have been raised over how this may affect milk prices for dairy farmers, leading consumer watchdog the Australian Competition and Consumer Commission (ACCC) to launch an investigation of this particular bid.

How the results of the investigation turn out may have significant impacts on farmers and consumers alike.

NSW Farmers' Dairy Chair Phil Ryan is among those expressing their fears over the results of Coles' acquisition.

In a discussion with a news source, he said that if the bid goes through, there's a chance that some farmers could go out of business because of 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.'

Coles Chief Executive Leah Weckert, however, believes that industry fears can be assuaged.

'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,' she said in a statement.

The ACCC will also consider the chances of Saputo leaving the NSW milk market should the bid be successful. Deputy Chair Mick Keogh is adamant that the market must remain competitive for farmers to continue to receive fair farmgate prices for their milk.

'If Saputo does exit NSW as a result of the acquisition, this would leave limited competition in regions of NSW, which could result in farmers receiving lower prices for their raw milk,' he said.

The same applies if Coles' bid is successful. This will not only increase the supermarket's own holdings, but it would mean that there is less selection on offer in terms of dairy products. Imagine fewer local and smaller processor milk on the shelves, only to be replaced by Coles's own milk.

Key Takeaways

• Concerns have been raised as Coles supermarket plans to buy two milk processing facilities from Canadian dairy company Saputo.
• Industry players and the Australian Competition and Consumer Commission worry that the buyout may reduce competition at the wholesale level, potentially leading to lower prices for NSW, VIC and even QLD dairy farmers.
• NSW Farmers' Dairy Chair, Phil Ryan, expressed fear that the acquisition could force some farmers out of business due to potentially lower farmgate milk prices.
• If the acquisition is successful, it will mark the first time a supermarket owns and operates its own milk processing facilities, which could reduce the variety of local and smaller processor milk on the shelves.

It's too early to determine the fate of the bid yet, but we here at the SDC hope that the ACCC's investigation will ensure that a fair outcome is reached for both sides—farmers and customers alike.

We'll make sure to keep you updated should any changes to the price of milk be brought about by this bid. Stay tuned for more updates!

What are your thoughts on this announcement, members? Do you think that Coles’ acquisition of the two milk processing facilities may negatively impact the dairy market? Feel free to comment below!

 

[Jen77au]

With the cost of living sky-high these days, there's no denying how much easier it is to shop online. You don't have to battle with the traffic, nor do you need to go out of your way to get to a particular store.

One of the added bonuses of buying groceries online is that you're free to leisurely compare and research prices—something we here at the SDC always do before checking out our shopping cart.

The ability to compare has been a blessing for countless regular shoppers, yet it also has advantages and disadvantages.

As we know, the more competition there is among goods and services, the more likely customers will get a better deal. However, if too much competition becomes a concern, this could negatively affect the market.

View attachment 25659

Concerns have been raised over a plan by Coles to buy two milk processing facilities. Credit: Shutterstock.

This is the situation that has come up for Australian farmers and shoppers alike in the wake of a proposed bid by Coles to buy two milk processing facilities in Victoria and New South Wales, which Canadian dairy company Saputo currently operates.

On the surface, it seems like Coles is just beefing up its business, but unfortunately, concerns have been raised over how this may affect milk prices for dairy farmers, leading consumer watchdog the Australian Competition and Consumer Commission (ACCC) to launch an investigation of this particular bid.

How the results of the investigation turn out may have significant impacts on farmers and consumers alike.

NSW Farmers' Dairy Chair Phil Ryan is among those expressing their fears over the results of Coles' acquisition.

In a discussion with a news source, he said that if the bid goes through, there's a chance that some farmers could go out of business because of 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.'

Coles Chief Executive Leah Weckert, however, believes that industry fears can be assuaged.

'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,' she said in a statement.

The ACCC will also consider the chances of Saputo leaving the NSW milk market should the bid be successful. Deputy Chair Mick Keogh is adamant that the market must remain competitive for farmers to continue to receive fair farmgate prices for their milk.

'If Saputo does exit NSW as a result of the acquisition, this would leave limited competition in regions of NSW, which could result in farmers receiving lower prices for their raw milk,' he said.

The same applies if Coles' bid is successful. This will not only increase the supermarket's own holdings, but it would mean that there is less selection on offer in terms of dairy products. Imagine fewer local and smaller processor milk on the shelves, only to be replaced by Coles's own milk.

Key Takeaways

• Concerns have been raised as Coles supermarket plans to buy two milk processing facilities from Canadian dairy company Saputo.
• Industry players and the Australian Competition and Consumer Commission worry that the buyout may reduce competition at the wholesale level, potentially leading to lower prices for NSW, VIC and even QLD dairy farmers.
• NSW Farmers' Dairy Chair, Phil Ryan, expressed fear that the acquisition could force some farmers out of business due to potentially lower farmgate milk prices.
• If the acquisition is successful, it will mark the first time a supermarket owns and operates its own milk processing facilities, which could reduce the variety of local and smaller processor milk on the shelves.

It's too early to determine the fate of the bid yet, but we here at the SDC hope that the ACCC's investigation will ensure that a fair outcome is reached for both sides—farmers and customers alike.

We'll make sure to keep you updated should any changes to the price of milk be brought about by this bid. Stay tuned for more updates!

What are your thoughts on this announcement, members? Do you think that Coles’ acquisition of the two milk processing facilities may negatively impact the dairy market? Feel free to comment below!

The farmers lose out again

 

[ShannyN]

The accc nsw govt etc needs to set a fixed farm gate price for milk for farmers to avoid disaster. I have no prob paying 10c a litre more if it all goes to the farmer

 

[Judy HB]

Agreed!

 

[Ian Crane-Luff]

With the cost of living sky-high these days, there's no denying how much easier it is to shop online. You don't have to battle with the traffic, nor do you need to go out of your way to get to a particular store.

One of the added bonuses of buying groceries online is that you're free to leisurely compare and research prices—something we here at the SDC always do before checking out our shopping cart.

The ability to compare has been a blessing for countless regular shoppers, yet it also has advantages and disadvantages.

As we know, the more competition there is among goods and services, the more likely customers will get a better deal. However, if too much competition becomes a concern, this could negatively affect the market.

View attachment 25659

Concerns have been raised over a plan by Coles to buy two milk processing facilities. Credit: Shutterstock.

This is the situation that has come up for Australian farmers and shoppers alike in the wake of a proposed bid by Coles to buy two milk processing facilities in Victoria and New South Wales, which Canadian dairy company Saputo currently operates.

On the surface, it seems like Coles is just beefing up its business, but unfortunately, concerns have been raised over how this may affect milk prices for dairy farmers, leading consumer watchdog the Australian Competition and Consumer Commission (ACCC) to launch an investigation of this particular bid.

How the results of the investigation turn out may have significant impacts on farmers and consumers alike.

NSW Farmers' Dairy Chair Phil Ryan is among those expressing their fears over the results of Coles' acquisition.

In a discussion with a news source, he said that if the bid goes through, there's a chance that some farmers could go out of business because of 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.'

Coles Chief Executive Leah Weckert, however, believes that industry fears can be assuaged.

'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,' she said in a statement.

The ACCC will also consider the chances of Saputo leaving the NSW milk market should the bid be successful. Deputy Chair Mick Keogh is adamant that the market must remain competitive for farmers to continue to receive fair farmgate prices for their milk.

'If Saputo does exit NSW as a result of the acquisition, this would leave limited competition in regions of NSW, which could result in farmers receiving lower prices for their raw milk,' he said.

The same applies if Coles' bid is successful. This will not only increase the supermarket's own holdings, but it would mean that there is less selection on offer in terms of dairy products. Imagine fewer local and smaller processor milk on the shelves, only to be replaced by Coles's own milk.

Key Takeaways

• Concerns have been raised as Coles supermarket plans to buy two milk processing facilities from Canadian dairy company Saputo.
• Industry players and the Australian Competition and Consumer Commission worry that the buyout may reduce competition at the wholesale level, potentially leading to lower prices for NSW, VIC and even QLD dairy farmers.
• NSW Farmers' Dairy Chair, Phil Ryan, expressed fear that the acquisition could force some farmers out of business due to potentially lower farmgate milk prices.
• If the acquisition is successful, it will mark the first time a supermarket owns and operates its own milk processing facilities, which could reduce the variety of local and smaller processor milk on the shelves.

It's too early to determine the fate of the bid yet, but we here at the SDC hope that the ACCC's investigation will ensure that a fair outcome is reached for both sides—farmers and customers alike.

We'll make sure to keep you updated should any changes to the price of milk be brought about by this bid. Stay tuned for more updates!

What are your thoughts on this announcement, members? Do you think that Coles’ acquisition of the two milk processing facilities may negatively impact the dairy market? Feel free to comment below!

I consider it undesirable for Coles or in fact any supermarketing company to own any supplier of products they sell, they are retailers not producers, owning a supplier of essential products would lead to lesser choices and lower quality.

 

[Pistol]

With the cost of living sky-high these days, there's no denying how much easier it is to shop online. You don't have to battle with the traffic, nor do you need to go out of your way to get to a particular store.

One of the added bonuses of buying groceries online is that you're free to leisurely compare and research prices—something we here at the SDC always do before checking out our shopping cart.

The ability to compare has been a blessing for countless regular shoppers, yet it also has advantages and disadvantages.

As we know, the more competition there is among goods and services, the more likely customers will get a better deal. However, if too much competition becomes a concern, this could negatively affect the market.

View attachment 25659

Concerns have been raised over a plan by Coles to buy two milk processing facilities. Credit: Shutterstock.

This is the situation that has come up for Australian farmers and shoppers alike in the wake of a proposed bid by Coles to buy two milk processing facilities in Victoria and New South Wales, which Canadian dairy company Saputo currently operates.

On the surface, it seems like Coles is just beefing up its business, but unfortunately, concerns have been raised over how this may affect milk prices for dairy farmers, leading consumer watchdog the Australian Competition and Consumer Commission (ACCC) to launch an investigation of this particular bid.

How the results of the investigation turn out may have significant impacts on farmers and consumers alike.

NSW Farmers' Dairy Chair Phil Ryan is among those expressing their fears over the results of Coles' acquisition.

In a discussion with a news source, he said that if the bid goes through, there's a chance that some farmers could go out of business because of 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.'

Coles Chief Executive Leah Weckert, however, believes that industry fears can be assuaged.

'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,' she said in a statement.

The ACCC will also consider the chances of Saputo leaving the NSW milk market should the bid be successful. Deputy Chair Mick Keogh is adamant that the market must remain competitive for farmers to continue to receive fair farmgate prices for their milk.

'If Saputo does exit NSW as a result of the acquisition, this would leave limited competition in regions of NSW, which could result in farmers receiving lower prices for their raw milk,' he said.

The same applies if Coles' bid is successful. This will not only increase the supermarket's own holdings, but it would mean that there is less selection on offer in terms of dairy products. Imagine fewer local and smaller processor milk on the shelves, only to be replaced by Coles's own milk.

Key Takeaways

• Concerns have been raised as Coles supermarket plans to buy two milk processing facilities from Canadian dairy company Saputo.
• Industry players and the Australian Competition and Consumer Commission worry that the buyout may reduce competition at the wholesale level, potentially leading to lower prices for NSW, VIC and even QLD dairy farmers.
• NSW Farmers' Dairy Chair, Phil Ryan, expressed fear that the acquisition could force some farmers out of business due to potentially lower farmgate milk prices.
• If the acquisition is successful, it will mark the first time a supermarket owns and operates its own milk processing facilities, which could reduce the variety of local and smaller processor milk on the shelves.

It's too early to determine the fate of the bid yet, but we here at the SDC hope that the ACCC's investigation will ensure that a fair outcome is reached for both sides—farmers and customers alike.

We'll make sure to keep you updated should any changes to the price of milk be brought about by this bid. Stay tuned for more updates!

What are your thoughts on this announcement, members? Do you think that Coles’ acquisition of the two milk processing facilities may negatively impact the dairy market? Feel free to comment below!

We stopped buying coles and Woolworths milk, mainly because the use by dates were always wrong. Milk was off before the date was reached. We now buy ALDI Farmdale Full cream long life milk. At the time of purchase this last carton was $19.08 for 12 x 1 ltr.

 

[goodmorning]

that will be another thing that the supermarket will own and out price it till the poor farmer goes broke and we then have to get it imported from somewhere else it might be in the future

 

[Thecheesequeen]

I refuse to buy cheap supermarket milk. I buy Victorian Farmers milk, which costs somewhere between the cheap stuff and the branded buys like Paul’s.

 

[Blackdck]

With the cost of living sky-high these days, there's no denying how much easier it is to shop online. You don't have to battle with the traffic, nor do you need to go out of your way to get to a particular store.

One of the added bonuses of buying groceries online is that you're free to leisurely compare and research prices—something we here at the SDC always do before checking out our shopping cart.

The ability to compare has been a blessing for countless regular shoppers, yet it also has advantages and disadvantages.

As we know, the more competition there is among goods and services, the more likely customers will get a better deal. However, if too much competition becomes a concern, this could negatively affect the market.

View attachment 25659

Concerns have been raised over a plan by Coles to buy two milk processing facilities. Credit: Shutterstock.

This is the situation that has come up for Australian farmers and shoppers alike in the wake of a proposed bid by Coles to buy two milk processing facilities in Victoria and New South Wales, which Canadian dairy company Saputo currently operates.

On the surface, it seems like Coles is just beefing up its business, but unfortunately, concerns have been raised over how this may affect milk prices for dairy farmers, leading consumer watchdog the Australian Competition and Consumer Commission (ACCC) to launch an investigation of this particular bid.

How the results of the investigation turn out may have significant impacts on farmers and consumers alike.

NSW Farmers' Dairy Chair Phil Ryan is among those expressing their fears over the results of Coles' acquisition.

In a discussion with a news source, he said that if the bid goes through, there's a chance that some farmers could go out of business because of 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.'

Coles Chief Executive Leah Weckert, however, believes that industry fears can be assuaged.

'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,' she said in a statement.

The ACCC will also consider the chances of Saputo leaving the NSW milk market should the bid be successful. Deputy Chair Mick Keogh is adamant that the market must remain competitive for farmers to continue to receive fair farmgate prices for their milk.

'If Saputo does exit NSW as a result of the acquisition, this would leave limited competition in regions of NSW, which could result in farmers receiving lower prices for their raw milk,' he said.

The same applies if Coles' bid is successful. This will not only increase the supermarket's own holdings, but it would mean that there is less selection on offer in terms of dairy products. Imagine fewer local and smaller processor milk on the shelves, only to be replaced by Coles's own milk.

Key Takeaways

• Concerns have been raised as Coles supermarket plans to buy two milk processing facilities from Canadian dairy company Saputo.
• Industry players and the Australian Competition and Consumer Commission worry that the buyout may reduce competition at the wholesale level, potentially leading to lower prices for NSW, VIC and even QLD dairy farmers.
• NSW Farmers' Dairy Chair, Phil Ryan, expressed fear that the acquisition could force some farmers out of business due to potentially lower farmgate milk prices.
• If the acquisition is successful, it will mark the first time a supermarket owns and operates its own milk processing facilities, which could reduce the variety of local and smaller processor milk on the shelves.

It's too early to determine the fate of the bid yet, but we here at the SDC hope that the ACCC's investigation will ensure that a fair outcome is reached for both sides—farmers and customers alike.

We'll make sure to keep you updated should any changes to the price of milk be brought about by this bid. Stay tuned for more updates!

What are your thoughts on this announcement, members? Do you think that Coles’ acquisition of the two milk processing facilities may negatively impact the dairy market? Feel free to comment below!

In the 60's most processing facilities were co-operatives of local farmers, who received fair price per gallon, enabling them to raise their families and contribute to the local community. Since supermarkets have entered the wholesale market, farm gate percentage price has plummeted, causing many families to walk off farms held by their families for generations. The only ones to benefit from supermarkets in the wholesale market are shareholders, who don't give a tinkers cuss about the damage their money grubbing antics cause. Kick ALL foreign and corporate ownership out or Australian food supplies

 

[Petra]

I buy what I can afford. That's it.

 

[Ronloby]

The MIGHTY dollar controls everything. The Gov. should stop this money grabbing by the supermarkets or should I say overseas companies buying up our local suppliers and or producers and then controlling the price paid at the gate. ALL overseas companies/investors should be banned from owning or controlling local companies regardless of who or what they are or represent.

 

[Subduedshilo]

The accc nsw govt etc needs to set a fixed farm gate price for milk for farmers to avoid disaster. I have no prob paying 10c a litre more if it all goes to the farmer

We should not have to pay 10c more!! These huge companies such as Coles need to pay all farmers the correct amount for the products. They are all just in it for the profit regardless of who they stomp on to get it. The government needs to step in and change the rules so that farmers get their fair share without it being passed on to the consumer. And everyone is having a go at the 88yr old for being greedy

 

[Abby2]

The MIGHTY dollar controls everything. The Gov. should stop this money grabbing by the supermarkets or should I say overseas companies buying up our local suppliers and or producers and then controlling the price paid at the gate. ALL overseas companies/investors should be banned from owning or controlling local companies regardless of who or what they are or represent.

Spot on !!

 

[Tygie]

With the cost of living sky-high these days, there's no denying how much easier it is to shop online. You don't have to battle with the traffic, nor do you need to go out of your way to get to a particular store.

One of the added bonuses of buying groceries online is that you're free to leisurely compare and research prices—something we here at the SDC always do before checking out our shopping cart.

The ability to compare has been a blessing for countless regular shoppers, yet it also has advantages and disadvantages.

As we know, the more competition there is among goods and services, the more likely customers will get a better deal. However, if too much competition becomes a concern, this could negatively affect the market.

View attachment 25659

Concerns have been raised over a plan by Coles to buy two milk processing facilities. Credit: Shutterstock.

This is the situation that has come up for Australian farmers and shoppers alike in the wake of a proposed bid by Coles to buy two milk processing facilities in Victoria and New South Wales, which Canadian dairy company Saputo currently operates.

On the surface, it seems like Coles is just beefing up its business, but unfortunately, concerns have been raised over how this may affect milk prices for dairy farmers, leading consumer watchdog the Australian Competition and Consumer Commission (ACCC) to launch an investigation of this particular bid.

How the results of the investigation turn out may have significant impacts on farmers and consumers alike.

NSW Farmers' Dairy Chair Phil Ryan is among those expressing their fears over the results of Coles' acquisition.

In a discussion with a news source, he said that if the bid goes through, there's a chance that some farmers could go out of business because of 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.'

Coles Chief Executive Leah Weckert, however, believes that industry fears can be assuaged.

'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,' she said in a statement.

The ACCC will also consider the chances of Saputo leaving the NSW milk market should the bid be successful. Deputy Chair Mick Keogh is adamant that the market must remain competitive for farmers to continue to receive fair farmgate prices for their milk.

'If Saputo does exit NSW as a result of the acquisition, this would leave limited competition in regions of NSW, which could result in farmers receiving lower prices for their raw milk,' he said.

The same applies if Coles' bid is successful. This will not only increase the supermarket's own holdings, but it would mean that there is less selection on offer in terms of dairy products. Imagine fewer local and smaller processor milk on the shelves, only to be replaced by Coles's own milk.

Key Takeaways

• Concerns have been raised as Coles supermarket plans to buy two milk processing facilities from Canadian dairy company Saputo.
• Industry players and the Australian Competition and Consumer Commission worry that the buyout may reduce competition at the wholesale level, potentially leading to lower prices for NSW, VIC and even QLD dairy farmers.
• NSW Farmers' Dairy Chair, Phil Ryan, expressed fear that the acquisition could force some farmers out of business due to potentially lower farmgate milk prices.
• If the acquisition is successful, it will mark the first time a supermarket owns and operates its own milk processing facilities, which could reduce the variety of local and smaller processor milk on the shelves.

It's too early to determine the fate of the bid yet, but we here at the SDC hope that the ACCC's investigation will ensure that a fair outcome is reached for both sides—farmers and customers alike.

We'll make sure to keep you updated should any changes to the price of milk be brought about by this bid. Stay tuned for more updates!

What are your thoughts on this announcement, members? Do you think that Coles’ acquisition of the two milk processing facilities may negatively impact the dairy market? Feel free to comment below!

Up go the milk prices again. While it is good they are buying a couple of processessers back from a overseas company, it is reasonable that the farmers are going to be squeezed tighter because of it.

Also, Coles milk is so watered down now so it would only mean more of that flooding through.

I don't like Coles flavourless watered down milk and i don't buy it. It costs a fortune to buy a dearer brand, but atleast it is NOT watered down, tastes better and is better for me than Coles watered down cr@p.

 

[ladykaliber]

The accc nsw govt etc needs to set a fixed farm gate price for milk for farmers to avoid disaster. I have no prob paying 10c a litre more if it all goes to the farmer

I have been a dairy kid for years and hate the thought of farmers struggling, diary is not easy work and they earn all they get. I have no problem paying extra for milk if it goes where it should - to the Farmer!!!

 

[Trudi]

So it's better for a Canadian company to run a dairy than an Australian one?

Stupid article!

 

[Abby2]

Up go the milk prices again. While it is good they are buying a couple of processessers back from a overseas company, it is reasonable that the farmers are going to be squeezed tighter because of it.

Also, Coles milk is so watered down now so it would only mean more of that flooding through.

I don't like Coles flavourless watered down milk and i don't buy it. It costs a fortune to buy a dearer brand, but atleast it is NOT watered down, tastes better and is better for me than Coles watered down cr@p.

What annoys me is they take the cream out to make cheese and cream and charge more for skim and lite milk than full cream milk

 

[Cheezil]

With the cost of living sky-high these days, there's no denying how much easier it is to shop online. You don't have to battle with the traffic, nor do you need to go out of your way to get to a particular store.

One of the added bonuses of buying groceries online is that you're free to leisurely compare and research prices—something we here at the SDC always do before checking out our shopping cart.

The ability to compare has been a blessing for countless regular shoppers, yet it also has advantages and disadvantages.

As we know, the more competition there is among goods and services, the more likely customers will get a better deal. However, if too much competition becomes a concern, this could negatively affect the market.

View attachment 25659

Concerns have been raised over a plan by Coles to buy two milk processing facilities. Credit: Shutterstock.

This is the situation that has come up for Australian farmers and shoppers alike in the wake of a proposed bid by Coles to buy two milk processing facilities in Victoria and New South Wales, which Canadian dairy company Saputo currently operates.

On the surface, it seems like Coles is just beefing up its business, but unfortunately, concerns have been raised over how this may affect milk prices for dairy farmers, leading consumer watchdog the Australian Competition and Consumer Commission (ACCC) to launch an investigation of this particular bid.

How the results of the investigation turn out may have significant impacts on farmers and consumers alike.

NSW Farmers' Dairy Chair Phil Ryan is among those expressing their fears over the results of Coles' acquisition.

In a discussion with a news source, he said that if the bid goes through, there's a chance that some farmers could go out of business because of 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.'

Coles Chief Executive Leah Weckert, however, believes that industry fears can be assuaged.

'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,' she said in a statement.

The ACCC will also consider the chances of Saputo leaving the NSW milk market should the bid be successful. Deputy Chair Mick Keogh is adamant that the market must remain competitive for farmers to continue to receive fair farmgate prices for their milk.

'If Saputo does exit NSW as a result of the acquisition, this would leave limited competition in regions of NSW, which could result in farmers receiving lower prices for their raw milk,' he said.

The same applies if Coles' bid is successful. This will not only increase the supermarket's own holdings, but it would mean that there is less selection on offer in terms of dairy products. Imagine fewer local and smaller processor milk on the shelves, only to be replaced by Coles's own milk.

Key Takeaways

• Concerns have been raised as Coles supermarket plans to buy two milk processing facilities from Canadian dairy company Saputo.
• Industry players and the Australian Competition and Consumer Commission worry that the buyout may reduce competition at the wholesale level, potentially leading to lower prices for NSW, VIC and even QLD dairy farmers.
• NSW Farmers' Dairy Chair, Phil Ryan, expressed fear that the acquisition could force some farmers out of business due to potentially lower farmgate milk prices.
• If the acquisition is successful, it will mark the first time a supermarket owns and operates its own milk processing facilities, which could reduce the variety of local and smaller processor milk on the shelves.

It's too early to determine the fate of the bid yet, but we here at the SDC hope that the ACCC's investigation will ensure that a fair outcome is reached for both sides—farmers and customers alike.

We'll make sure to keep you updated should any changes to the price of milk be brought about by this bid. Stay tuned for more updates!

What are your thoughts on this announcement, members? Do you think that Coles’ acquisition of the two milk processing facilities may negatively impact the dairy market? Feel free to comment below!

Supermarkets prove time & again that they cant be trusted & are only interested in profits, not what they do to battling producers (or consumers) to achieve these profits!
Stinks & shouldnt be allowed!