ABC Background Briefing investigative program delves into our food industry in crisis. Many food producers are operating in waver thin margins, others have already collapsed. This week farmers and producers speak out to Background Briefing journalist Hagar Cohen. Food producers claim that the Duopoly are using their dominance to control the market. Now the ACCC are examining once again new claims about their practices, such as using their market power to control their suppliers. The duopoly control almost 70% of the market. Up to now many farmers have been loathe to speak out for fear of loosing their contracts.
The milk wars is another issue of this ongoing story of farmers not being given a fair deal. Listen to the story run by the ABC in February “Dairy farmers face ruin amid supermarket milk war“.
Farmers state that they are getting 25 or 26 cents a litre and the cost of production varies from farm to farm but for some it is around 43 cents a litre. “So who would want to be a dairy farmer” article by Rebecca Halse on the Save Australian Farming web site gives an historical overview of how it started.
Woolworths has admitted that $1-a-litre milk is unsustainable and has taken steps to deliver fairer prices to dairy farmers. This supermarket is set to trial a new scheme where they will cut the processors out of the chain and negotiate directly with the farmers on prices. Read article