The retailer Coles gains clearance to acquire milk plants
Source: The DairyNews
The Australian Competition and Consumer Commission's (ACCC) decision to greenlight Coles' acquisition of two milk plants from Canadian dairy giant Saputo has ignited dissatisfaction among farmers.
Australian Dairy Farmers (ADF) President Rick Gladigau expressed concern that the move could lead to a decline in raw milk prices paid to farmers, emphasizing the potential negative impact on market competition and transparency. The ACCC, while acknowledging industry concerns, concluded that the acquisition is unlikely to substantially lessen competition based on its detailed review of the current state of competition and Coles' incentives.
Rick Gladigau claims the decision will be a key turning point that the industry and ACCC will look back upon and regret:
"We hope that in 10 years' time we are not saying 'we told you so' like we have said about the impact of $1 litre milk that Coles started in 2011.We cannot see how this deal will result in anything but increasing Coles already substantial market power, reducing market competition and market transparency, and increasing risk to farmers".
Rick Gladigau claims the decision will be a key turning point that the industry and ACCC will look back upon and regret:
"We hope that in 10 years' time we are not saying 'we told you so' like we have said about the impact of $1 litre milk that Coles started in 2011.We cannot see how this deal will result in anything but increasing Coles already substantial market power, reducing market competition and market transparency, and increasing risk to farmers".
