Milk war only winner is big business, Holt
Author: Colin Holt
Published on: 02-February-2011
The recent price war around milk will be the final blow to the WA dairy industry according to Colin Holt Member for the South West.
Mr Holt believes Wesfarmers has lost its soul and that this recent decision is another example of market domination at work.
“Obviously other major retailers would be forced to match these prices, which will create an unsustainable situation for an already struggling dairy industry,” said Mr Holt.
“Wesfarmers who own Coles was built on the back of WA farmers and recent announcements like this one, reflects the profits before people mentality that has evolved in this organisation”
“If these types of predatory pricing decisions continue, no dairy farmers in the South West will exist. Local communities will lose a major employer and farmers will lose their livelihoods,” said Mr Holt.
“This is another example of Coles and Woolworths using their market dominance to put the squeeze on local farmers. Coles has said they will wear the cost but I have grave fears that when the milk contract is next negotiated the only people who will be punished are the WA dairy farmers,” said Mr Holt.
“While consumers may appreciate the price decrease initially, we will all have to pay for it further down the line.”
Mr Holt has called on all consumers to buy WA branded milk to ensure local farmers are given a fighting chance.
“In the short term it is important that local consumers continue to purchase local WA branded milk to support the South West dairy industry. In the long term, if this situation is not reversed, I fear it could be terminal for the local dairy industry”
Mr Holt said that there were options for federal legislative changes available to protect farmer’s rights, and he had spoken to Tony Crook Member for O’Connor in a bid to ensure the Federal Government takes steps to protect the local industry.
For further enquiries please contact Colin Holt 0418 902 204 or colin.holt@mp.wa.gov.au
