QDO Blames Coles For Dairy Collapse

$1 per litre milk has wiped $10 billion out of the Australian dairy industry since it was introduced in 2011,
the QDO says (Photo: Wikimedia)

September 18, 2018

The Queensland Dairyfarmers Organisation has blamed supermarket giant Coles for a $10 billion loss in the Australian dairy industry.

“The Australian dairy industry is in crisis,” a media statement released by the producer association on Tuesday said.

“While we do not like to scaremonger, the reality is that Queensland, much of NSW and probably the Western Australian dairy industries won’t be around in a few years if things stay as they are.

“When Coles introduced $1 per litre milk in 2011, the minimum price of milk was $1.30.

“For the other supermarkets to stay competitive, they followed suit and now all supermarkets stock a $1 per litre line.

“Not only did this introduction knock 30 cents off the minimum price, but the processors were also forced to reduce the cost of their branded milk to stay competitive.

“Factor in inflation over the last seven years, we are talking about a 60 cent discrepancy on 2011 prices.

“Based on an average volume of milk sold per annum of 2.55 billion litres, this equates to a $10 billion-plus loss to the dairy industry over the last seven years.

“It is a staggering sum and goes a long way to explain why our dairy industry is hurting so much.

“QDO’s campaign for a 10 cent/litre Drought Levy has had a terrific response from the public with now over 100,000 signatures on the petition on change.org as well as the support via our social media channels.

“We have been receiving phone calls and emails from everyday mums and dads wanting to know what more they can do to get this 10 cent increase through.

“It has been truly heartening to see so many people wanting to support our industry.

“When QDO initiated the campaign, Prime Minister Scott Morrison said that he would support the levy, but only if Coles were on board.

“That our newly appointed leader would say such a thing, truly demonstrates just how much power Australia has allowed the supermarkets to acquire.

“The value of the media’s support cannot be understated. They have helped make something that could have been a flash-in-the-pan story into something that continues to gain momentum, two weeks in.

“The media will have no doubt have been receiving pressure if not outright threats since Coles is one of the biggest advertisers in Australia; so we are truly appreciative of their ongoing support.”