Dairy Council welcomes ACCC action against Coles

The WAFarmers Dairy Council has welcomed news of the Australian Competition and Consumer Commission (ACCC) instituting proceedings in the Federal Court against Coles Supermarkets Australia for allegedly engaging in unconscionable conduct toward 200 small suppliers.

Dairy Section President Phil Depiazzi said it was important that supermarket chains be held to account for their interactions with suppliers.

“As we have repeatedly said, Coles’ $1 per litre milk campaign has resulted in low farmgate prices for dairy farmers, making profitability more difficult and forcing some out of the industry,” Mr Depiazzi said.

“Whether or not these small suppliers include those in the dairy industry, we are pleased to see Coles being held to account for their treatment of farmer suppliers.”

The Dairy Council continues to call for the formalisation of a mandatory Code of Conduct governing the relationship between suppliers and supermarkets.

“Having a Code of Conduct would prevent the major supermarket chains from taking advantage of suppliers and would likely result in a healthier and more profitable farming sector,” Mr Depiazzi said.

“We eagerly await the outcome of the Federal Court case and hope to see the better treatment of suppliers as a result.”

See the National Farmers’ Federation’s statement here

See Australian Dairy Farmers’ statement here

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