A group representing dairy farmers is calling on the competition watchdog to block the sale of two milk factories to supermarket giant Coles.
In April 2023, milk processor Saputo announced it had sold its Laverton factory in Victoria and Erskine Park plant in New South Wales to Coles for $105 million, subject to regulatory approval.
The Australian Competition and Consumer Commission (ACCC) will decide next week if it will approve, oppose or impose extra conditions on the deal.
But in July, the ACCC outlined concerns the acquisition could trigger a major structural shift in the dairy sector.
Rick Gladigau is a South Australian farmer and the president of the Australian Dairy Farmers (ADF) lobby group.
He says the ADF is hopeful that the ACCC opposes the deal.
“Our concerns are losing transparency, losing the bargaining power and imbalance it can create for the farmer, and losing competition,” he said.
A lack of trust for the purchase of key fresh milk dairy factories, according to the ADF, comes from Coles’ actions during the 2011 dairy downturn.
Coles introduced milk for $1 a litre milk on Australia Day 12 years ago, which sparked a price war between major retailers that lasted for nearly a decade.
Mr Gladigau has not had any direct contact from Coles about farmers’ concerns.
He says this includes better protection for producers under the Food and Grocery Code, and for the code to become a mandatory set of rules between supermarkets, farmers and suppliers.
The ACCC is expected to make its decision on September 14.
(ABC)
