September 10, 2014
The Queensland Dairyfarmers’ Organisation has again urged the Federal Government to amend the Competition and Consumer Act to introduce an “effects test” into the legislation.
An effects test would empower the Australian Competition and Consumer Commission to oversee how big businesses deal with smaller competitors.
The QDO believes it could be a valuable tool to help the ACCC address the severe impacts caused by the supermarket milk price war.
QDO President Brian Tessmann said today that ACCC chairman Rod Sims had recently made positive comments in the media about the need for an effects test.
Mr Tessmann said the dairy industry had been lobbying hard for an effects test as one of the key policies that could help alleviate the squeeze on the dairy supply chain being caused by the supermarket discount war.
“The impacts of the milk war are especially acute in States such as Queensland, where almost all of our milk goes into fresh drinking milk supply,” Mr Tessmann said.
“These are 1992 retail prices yet we have 2014 costs. In the Queensland industry we have lost more than 100 farmers from the industry since the milk war began and Queensland is now about 20 per cent short of supplying its own drinking milk needs.
“As chair of the competition regulator, Mr Sims is giving a clear indication of the tools that he needs to do his job properly and ensure that farmers are protected from anti-competitive behaviour.
“We see that the supermarket milk war fits into that category, and requires urgent attention from the Federal Government.
“All the dairy industry asks for is fair competition and treatment in the market place. We are not receiving that at the moment.
“In fact the huge power of the supermarkets is causing market failure, which is impacting the whole domestic dairy supply chain and will ultimately affect consumers.
“So we are calling on the Federal Government to take urgent action to provide the ACCC with the tools it needs to do its job, and to restore a fair market to the Queensland dairy industry, which is a major economic contributor to the State and regional communities.”
