Milk Price War

[Californication]

Attention BubHub Army,

Our Dairy Industry needs you! Please boycott Coles and Woolies milk. The Dairy farmers are doing it tough already and can't take much more. Some dairy farmers down here (South West WA) have found out the supermarkets plan is to undercut the price of milk, drive our dairy farmers out of business and then bring milk in from overseas as it's cheaper for the big chains to do that.

Currently, our dairy farmers are getting 10 cents p/L. They need at least 20 cents to make any sort of profit. And they should get paid this! The mark up on milk is ridiculous and the primary producer should be paid an appropriate amount.

Don't fall for it Australia or we will no longer have access to fresh milk and will be drinking UHT stuff from China! If we let Coles and Woolies do this, what will be next? Bread? Fruit? Veg?

So please boycott Coles and Woolies brand milk. Even better, shop at IGA! They support the local community and industry without trying to destroy it to increase their profits!

Article from The West:

Cheap milk faces Senate grilling
Peter Veness, AAP
February 10, 2011, 5:49 pm

The price war on milk will be the subject of a parliamentary inquiry.

Coles started a discount battle in January when it began selling cartons for just $1 a litre.

Woolworths immediately challenged its rival, sparking a wider battle with Aldi and Franklins.

The Senate on Thursday passed a motion calling on the economics committee to investigate how the price war is affecting dairy farmers.

The inquiry will also examine if Australia's supermarket giants have engaged in anti-competitive and unsustainable practices.

Independent senator Nick Xenophon successfully moved the motion, with the support of the coalition and the Australian Greens.

It came only hours after coalition MPs called for the Australian Competition and Consumer Commission to save the many dairy farmers facing bankruptcy.

"There is growing evidence that this latest grab for market share by the big two supermarket chains could have a devastating impact," Senator Xenophon said.

In a letter to Prime Minister Julia Gillard, made public on Thursday night, Senator Xenophon accused the government of ignoring the plight of dairy farmers.

He was seconded by lower house independent MP Rob Oakeshott, who is backing Labor in minority government.

"We are incredulous that the government does not see this as significantly damaging to the dairy industry in Australia," they said in their letter dated February 8.

"It is a 'price war' we do not need and should not have and it is not in the long term interests of consumers."

Liberal backbenchers and dairy industry leaders gathered at Parliament House on Thursday.

Joining them was opposition agriculture spokesman John Cobb, who said executives at Coles were "quite happy to get their bonuses over the dead bodies of farmers".

Shareholders of Coles' parent company Wesfarmers needed to take action to stop the "predatory pricing", the group said.

They are asking shareholders to gather 100 signatures in a bid to call an extraordinary general meeting.

Australian Dairy Farmers vice president Chris Griffin urged "truck drivers" and "owners of corner stores" to use their shareholder power.

"Let's get behind the industry and stop this unsustainable pricing," he said in a statement.

Mr Cobb, who hails from the rural NSW electorate of Calare, said consumers would fail to understand that Coles selling milk at $1 a litre would eventually entrench a dominant player who could set any price.

Australian Greens deputy leader Christine Milne said the inquiry must deliver for dairy farmers or risk undermining confidence in the parliament.

"Dairy farmers will be increasingly troubled by the emerging pattern of Senate inquiries making supportive recommendations and then being completely ignored," Senator Milne said.

"The time for talk is over. It's time Australia's dairy farmers saw something being done to protect their livelihoods."

[Mahjong]

Im in :thumbsup: My father used to be a farmer (fruit grower) and these supermarkets really do shaft the farmer :( The farm ended up finishing up from lack of $$$ They just couldnt do it any longer.

[bheditor]

Hi Californication!! Thanks for the post. This is a great idea.

I've created a poll so that those who want to show their support can do so.

PLEASE VOTE 'YEP, COUNT ME IN" if you plan to support this boycott!!

NB: There is no "NO" button, because this is really just to get an idea of how many people are supportive of the idea.

So ... who else is in!!???

[Janesmum123]

Is it only woolies and coles "brand" milk?

Other milk is ok right?

[jayemkayare]

I've always been in, and I think our gutless government should do something.


Sent from my iPod touch using Bub Hub

[elleandsam]

I'm in! If only we could legally buy raw milk.

[DummyMummy]

I'm in ... it isn't that great of a saving anyway. A couple of dollars a week or so ... I'd waste a couple of dollars a week on a chocolate bar without even thinking ...

[SalTheGal]

bheditor... we could add a poll to the thread, so that we can get a number at a glance of how many people are in.

I just want to clarify too that its only the woolies/coles actual branded milk??

I usually buy Pauls.

[Hootenanny]

I won't touch it with a 10 foot pole, we have a local producer in our area who sells to little shops, Udder Farm, and I will be buying their stuff all the time now, reward those who actually do all the hard work, dawn to dusk and then some.

[share a book]

I know many people who are glad that the price of milk is going down, they can now afford to give their family 1 glass of milk per day each instead of basically saying no to milk or running out a few days before the fortnight ends. I don't know what the answer is, but milk at this price is allowing some families to actually have it in the house.

[KatiesMum]

:yes: Im in.

For milk at the moment - it is the current advertising thing with $2 for 2 litres. I think this is going to be only Coles and Woolworths brand milk .... but they are extending it also to bread and some other staples soon.

What tends to happen is because Coles and Woolworths have such an enormous amount of the market, farmers and major producers of goods cannot afford NOT to sell to them, but often cant afford TO sell to them either. They cant afford for Coles to say "ok we arent going to stock your brand of *product*" as they then simply would not be able to sell their product ... so Coles and Woolworths have such an enormous power in bargaining - which they use ruthlessly.

If something is on special ... you can guarantee that the supermarket is still making their margin on it - they have simply passed the reduction in price on to the maufacturer/producer. They do this in all kinds of ways as part of there 'marketing and subsidies' contracts .... but they will not stock a product unless they have a good margin.

In addition - that is why they are introducing and expanding their own branded products. They are simply stocking less choices in order to gain market share.

It is predatory behaviour and should be stamped out as soon as possible.

[narribri]

I'm in.

I bought one bottle the first time i saw it thinking it was too good to be true... Came home and followed it up, realised it was. Wouldn't touch it again now, not a chance. We need our local dairy industry.

[Mrs Awesome]

I get my milk delivered from Aussie Farmers Direct....is that brand ok?

[bheditor]

hi !! :wave:

I've created a poll (good idea SaltheGal) so we can keep track of the number of Bubhubbers who support this boycott.

Unfortunately to create a poll, you need two options, so that is why the second option is called "Don't Click This ... etc"

It doesn't matter who doesn't support this boycott. We only want to keep track of the number of people who do.

Feel free to discuss reasons for and against in the thread but only vote in the poll if you are going to support the boycott.

Thanks everyone!!

[Guest]

I buy Pura and always have. Is this ok? I don't buy any supermarket brand products either, never liked them and I like what I know, I don't like to switch to save a bit.

[3boysNAprincess]

I love that the price has dropped... I know I will only buy this milk. It's very affordable.. Some people can only afford this milk.

[bumMum]

I am in! We are incredibly broke but knowing this, I will shop differently. We just got 2 litres milk at IGA for 2.50 so the difference isn't bad and we can survive.

[DummyMummy]

Just to clarify:

The boycott is against supermarket-branded milk - ie. Woolworths or Coles branded or generic milk - which they are currently selling for $1/litre.

Other milk, made by local companies, sells for about $3.60 for 2 litres in the supermarket so if you buy Coles/Woolies brand you save about $1.60 for every 2 litres (if you're like, me you pick up a Cadbury Creme Egg for about that same amount at the checkouts). :eek:

I'll give up that Creme Egg if it means helping to save our country's dairy farmers.

The same with cage eggs ... a discussion for another day ... but I will gladly pay extra for eggs knowing that the chickens aren't treated terribly.

I'm by no means rich - we struggle from pay to pay actually - but it is only a couple of dollars.

[Daydream Believer]

I'm in too. I'm buying Pauls while they are donating to the qld floods, but normally I buy dairy farmers.
How about the cheap brands at IGA? My mum uses (a lot of) 'Daisy Fresh' anyone know about this brand?

[Hootenanny]

I love that the price has dropped... I know I will only buy this milk. It's very affordable.. Some people can only afford this milk.

I understand and empathise but I can guarantee you that they are not doing this out of the goodness of their hearts, they are trying to control the market so they have more power and ultimately make more money. Dairy farmers are currently paid as little as10-20 cents a litre for their milk by the big companies, they cannot continue to survive on that kind of money, if they don't survive production levels fall and milk prices ultimately go up even more.

[bheditor]

oh - make sure you come back and click on the Poll if you posted your comment before it was created!!:cheerleader1:

[Buttoneska]

I live in sth Gippsland so no chance of me supporting coles/woolies on this one (not that I buy from them anyway)...

but all my diary is devondale..

**I assume this also means not supporting coles/woolies brand butter, chesse and yoghurts too?

[share a book]

Coles brand cheese is the only affordable vegetarian cheese in town. It's either that or we don't have cheese at all, and even getting the Coles brand one is a special thing, it's not like it's overly affordable, just moreso than the others. Many people aren't in a position to be buying that softdrink or chocolate bar on the way through the checkout and have nothing else they can cull from their trolley. Like I said, I don't know what the answer is, but what I do know is that many low income families struggle to put milk in the fridge at all and this will make it that little bit easier to do so.

[Buttoneska]

can I also just say to everyone to remember back in the 90s when these big companies started buying out the petrol stations and offering big discounts..

unfortunately the public failed to support the independents and within a few yrs we have seen 99% of petrol stations being rebranded as coles/woolies and once they had control of the market prices sky rocketed

(i know there are other global factors at play with the price of petrol - BUT these companies are setting the price of petrol at an excessive high price because there is just not enough competition anymore)

in 5yrs time we will find ourselves in exactly the same situation - over inflated prices for basic diary. And worse still our local diary industry will struggle to survive and we will import inferior produce from o.s.

Bad, bad news..

[WhiteMagicMother]

I don't support any 'home brand' products from either supermarket. I try to buy products from my home state, followed by from home country. Definately NOT by the giant profit makers though - be it milk, butter, cling wrap or otherwise. I don't believe they should be allowed to make and sell their products direct to the consumer- that is not their role. Leave production to the experts (who I have more trust in anyway!).

I saw my step-father go through a similar thing in the lobster/ crayfishing industry. He lost his house, boat, wife & the livelihood he had been doing since he was 15- essentially all he knew HOW to do.
It is heartbreaking to see the inidividuals and families go through the trauma that can be caused by the rich trying to get richer and pushing out the little guys.

[bheditor]

I live in sth Gippsland so no chance of me supporting coles/woolies on this one (not that I buy from them anyway)...

but all my diary is devondale..

**I assume this also means not supporting coles/woolies brand butter, chesse and yoghurts too?

Hi Buttoneska...

Good question.

I think we are just focusing on the milk at the moment ... it is the thing coles and woolies are pushing as "cheap" right now ...

It will make a HUGE difference if BHers and their families don't buy coles/woolies brank milk! The roll on effect will make a difference to all dairy products.

Of course, you should do whatever you feel is right though ... boycott the entire shop!! :yes:

[Guest]

I'm not supporting this, but I think as a couple of posters have written, people do struggle financially and saving on this helps them. You say its only a few dollars but its actually alot of money at the end of the week. I buy a 3l for almost $5 everyday or second day, so say 4-5 times a week (we drink alot of milk), so its not just a couple of dollars a week and it means they can afford something else. As much as people want to support farmers, there are low income earners that struggle on everything and want the saving even though it means long term damage.
But I hate that it's always put on customers alone and low income earners especially are targeted, they are then put between a rock and a hard place. imo the gov has more power to stop this but they don't? Why is that?

[Hootenanny]

This article is interesting, it calls for shareholders of westfarmers (who own coles) to call for an extraordinary shareholders meeting to explain their strategy vs corporate responsibility.
http://au.finance.yahoo.com/news/Dairy-farmers-welcome-price-abc-2303863566.html?x=0

[Buttoneska]

Hi Buttoneska...

Good question.

I think we are just focusing on the milk at the moment ... it is the thing coles and woolies are pushing as "cheap" right now ...

It will make a HUGE difference if BHers and their families don't buy coles/woolies brank milk! The roll on effect will make a difference to all dairy products.

Of course, you should do whatever you feel is right though ... boycott the entire shop!! :yes:

yeh I don't shop at coles/woolies/westfarmers shops/petrol stations anyway but I still think it is important to 'support' this campaign in spirit..

[Buttoneska]

But I hate that it's always put on customers alone and low income earners especially are targeted, they are then put between a rock and a hard place. imo the gov has more power to stop this but they don't? Why is that?

I think that because in general it is believed that government should not control a free market - a market should be able to provide what the consumer wants... therefore the onious is on the consumer to demand and support the products they want and value..

[jayemkayare]

It is a good thing that essentials are affordable for everyone, they absolutely should be!!! But i worry that the prices just go up anyway after all the competition has been effectively eliminated. I don't know why the government doesn't do anything, I guess the big corporations have alot of power & money. I think it's really very sad. Hopefully it makes a difference, if all those who can manage the extra few dollars support the Aussie farmers.

Sent from my iPod touch using Bub Hub

[HeldAtRansom]

I would love to say my family would be in on this, but the more expensive brands of milk are really creamy and myself and Rockstar boy can not stomache it, its taken both of a us a while to tolerate cows milk after drinking soy for so long.

I think this is a really great idea but i do see how the low income earners can feel a little belittled, maybe not the right word, sorry preggy brain and stuggling to think of anything else. But not everyone has the fincial backing to spend more in the supermarket than they already do. Petrol prices fluxuate, intrest rates have gone up so peoples pockets are even tighter than they would like them to be.

[lulu 2]

I was only talking about this sort of thing happening on BH not long ago with the monopolys woolies and to the lesser coles are trying to gain over the retail market.
Only in Australia ,could 2 retail companys own such a huge share of the market.
The milk is bought from The milk companys ,they have their name brand on the shelf next to the home brand milk they supply. Woolies told them they wanted their home brand milk at $1.99 and then the milk company was not only forced to supply the home brand at that price but they were also forced to supply Coles for that price too.
For everyone else the milk has gone up which makes the IGAs even less competitive, in any other industry this would be called anti competitiveness I believe and its only the start. Once the competition is out of the way the prices will go back up we will end up with milk and other staples from overseas.

[HELPihavea2yrold!]

My local IGA is selling their brand of milk for $2.99 for 3L! I prefer to shop there then the big 2. Its nice milk as well, not like some cheap stuff.

[headoverfeet]

I was quiet happy paying $2.50 a L for raw milk in the city, unfortunately we don't have access to this milk any more- which came straight from the farmer. At the moment we don't have access to coles or woolies brand milk anyway so I buy browns by default, $5.50 for 3L.

[trishalishous]

I just said joking to DH (his grandfather is a dairy farmer and DH works with him) 'oh look, cheap milk' and got the lecture :)
you used to be able to buy direct from the dairy distributer here, but apparently they can't afford to compete.

[bheditor]

Hi

Nobody wants to make those of us who are genuinely struggling feel bad about putting their family's need first.

I guess the point being made by a lot of posters is that this price rise will be 'expensive' in the long run and low-income earners will struggle even more.

If a boycott means lower prices in the future and a market fairer for farmers and consumers then it can't be a bad thing can it?

And if enough people who can afford to spend the extra money do so now, then the low-income earners can reap the benefits in the future.

Does that make sense?

[BabelFish]

It is a good thing that essentials are affordable for everyone, they absolutely should be!!! But i worry that the prices just go up anyway after all the competition has been effectively eliminated. I don't know why the government doesn't do anything, I guess the big corporations have alot of power & money. I think it's really very sad. Hopefully it makes a difference, if all those who can manage the extra few dollars support the Aussie farmers.

Sent from my iPod touch using Bub Hub
The government are doing something. Coles' behaviour in this is being subject to a Senate enquiry and investigation of anti-competition tactics and engaging in a price war.

[JATS]

Sorry but when you rent, live off 35k a year with 3 kids, live week to week and have a household that consumes 4L of milk a day $28 a week is much easier to cope with than up to $70 a week. A saving of over $2,000 a year is highly significant.

Unfortunately for low income families it's just not realistic to do this, and yes it sucks because in the long run things will be worse.

[Myztiks#1Fan]

Still doesn't make me want to buy there brand as i am happy with buying Pauls as i had always done

Sent from my GT-I9000T

[NancyBlackett]

My local IGA is selling their brand of milk for $2.99 for 3L! I prefer to shop there then the big 2. Its nice milk as well, not like some cheap stuff.

Have you read the ACCC's report into grocery prices? IGA is far from innocent - in fact their monopoly on supply increases prices significantly.

I'm all for boycotting Coles and Woolies on milk where possible - our farmer's deserve better.

[bheditor]

Sorry but when you rent, live off 35k a year with 3 kids, live week to week and have a household that consumes 4L of milk a day $28 a week is much easier to cope with than up to $70 a week. A saving of over $2,000 a year is highly significant.

Unfortunately for low income families it's just not realistic to do this, and yes it sucks because in the long run things will be worse.

hi Jats,

Exactly... that is why others who can afford to boycott want to boycott... so that things aren't even worse in the future!

[JATS]

:thumbsup: absolutely, hats off to those who fork out to support the cause!

[Hokey Pokey]

We are a family of 7 and unfortunately can not afford to buy milk anywhere else but coles or ww :(

[soexcited]

Other milk, made by local companies, sells for about $3.60 for 2 litres in the supermarket so if you buy Coles/Woolies brand you save about $1.60 for every 2 litres (if you're like, me you pick up a Cadbury Creme Egg for about that same

SUCH a good point! I have to admit I always buy the Coles milk as it is a lot cheaper and I like to save on my groceries where I can. BUT I also like to support the Farmers. We don't go through that much milk I am sure there is something I can sacrifice each week to buy milk that won't put the farmers at risk.

[our little treasures]

Hmmm That would mean it would also cover Aldi's milk since they dropped theirs to $2.89 for 3 ltrs???

I am not in. Call me selfish pfft.

For years people have been moaning about the price of staples and now when prices are dropped everyone is moaning. A while ago Choice worked out that we were in fact being ripped off for the price of milk anyway..


As my hubby works at Coles I know it wont last long. I know it's TEMPORARY Enjoy it. I would say it's a grab to catch the consumer as they get rid of savings.
BTW in my hubby's store it's made no difference to sales FYI

[SalTheGal]

I just think there has got to be a balance.... the price drop would be ok if it were the supermarkets absorbing the drop, but they aren't.... and this in turn will put more dairy farmers off the land, thus causing more families to join the poverty line, and become low income earners themselves..... it becomes a vicious cycle.

I fill our quota of RDI of calcium with milk/cheese/yoghurt (home made)... and we (with a family of 2adults and 2 children) only need to buy a 2l milk every few days....

Maybe some families can cut back on the amount of milk they consume, to absorb the cost, rather than sticking with the cheaper brands, and ultimately forcing other families into poverty.

[share a book]

Maybe this is a good time to look into non-dairy alternatives?

BTW, we only go through 3L every 7 to 10 days, and only really use it in coffee, so it's not like we're going through heaps and heaps each week.

[Buttoneska]

Maybe this is a good time to look into non-dairy alternatives?

BTW, we only go through 3L every 7 to 10 days, and only really use it in coffee, so it's not like we're going through heaps and heaps each week.

I think it fine to find non - dairy alternatives for health or ethical reasons, but outside of that I don't see the logic in boycotting an industry that provides employments and careers to many many families.

[our little treasures]

Sal can I ask where you got that supermarkets are not absorbing the cost?

[Azurial]

Would everyone who supports buying this farmer destroying milk like to be only able to buy UHT milk? As thats where it will end up, and 'real' milk will be a gourmet item at $5 a litre.

[our little treasures]

I ask because all enquiries I have made and have actually read in the paper have stated that Coles have to pay whatever the milk industry sets it's price at meaning any enquiry will just show that Coles is making a loss.

[goldencrumble]

I am not going to say much on this as I am too close to it.

But yes, Coles is prepared to make a loss. This is not about ripping off dairy farmers, its about getting more traffic thru the doors.

And it wont be long before we see an advertising campaign for labelled milk (Rev, Skinny, Pura etc) on the TV.

[Buttoneska]

I am not going to say much on this as I am too close to it.

But yes, Coles is prepared to make a loss. This is not about ripping off dairy farmers, its about getting more traffic thru the doors.

And it wont be long before we see an advertising campaign for labelled milk (Rev, Skinny, Pura etc) on the TV.

it may not be about ripping of dairy farmers, but they will still be the victims of Coles unethical business tactics. It's dispicable.

I really wish we would all learn the REAL value of everything we buy and resuffle our society back to a true economy.

1L of milk costs SOCIETY alot more then $1.

[our little treasures]

AND again I will ask where are you getting your information from?

[~Bec~]

Until very recently my DF worked for a manufacturing company that sold products in Woolworths and Coles and when items are on sale it's the supplier that has to sell them to Woolworths or Coles at a cheaper price (ie, the supermarkets' profit remains, the suppliers' decreases). Another interesting point is you know the junk mail pamphlets from the supermarkets? The suppliers actually pay to advertise in them and it costs thousands.

When I was a child we had fixed pricing for milk, bread and eggs (I think) so regardless of where you went they were the same price. Consequently we had many more corner stores. So sad that this is no longer the case. Milk (from memory) was about 27c a pint and you could get 3c back on every bottle returned. There were 2 types of milk, red top or blue top and they were delivered every morning by the milk man... *sigh*

[Hootenanny]

I am not going to say much on this as I am too close to it.

But yes, Coles is prepared to make a loss. This is not about ripping off dairy farmers, its about getting more traffic thru the doors.

And it wont be long before we see an advertising campaign for labelled milk (Rev, Skinny, Pura etc) on the TV.

For now they are wearing it to get people through the doors, what will happen when the contracts for milk supply are due to be renegotiated? The interesting thing I am noticing though is that it may just backfire on them, it has become evident in this thread that those who will buy into the cheap milk 'bargain' are not the ones who will go and and buy a lot of 'extra' stuff as they just don't have the money and those who may buy extras are p'd off at the big companies and are talking about taking their business elsewhere. Great marketing ploy!!!

[onionskin]

We are a family of 7 and unfortunately can not afford to buy milk anywhere else but coles or ww :(

Yes, us too. We go through at least 6ltrs a day.

I wish I could swap for the farmers, but my family budget just can't be stretched that far. I feel really bad but what do you do?

[onionskin]

When I was a child we had fixed pricing for milk, bread and eggs (I think) so regardless of where you went they were the same price. Consequently we had many more corner stores. So sad that this is no longer the case. Milk (from memory) was about 27c a pint and you could get 3c back on every bottle returned. There were 2 types of milk, red top or blue top and they were delivered every morning by the milk man... *sigh*

*sighs* yep the good old days. And milk was so much better in those old glass bottles. yum. yum.

[our little treasures]

For now they are wearing it to get people through the doors, what will happen when the contracts for milk supply are due to be renegotiated? The interesting thing I am noticing though is that it may just backfire on them, it has become evident in this thread that those who will buy into the cheap milk 'bargain' are not the ones who will go and and buy a lot of 'extra' stuff as they just don't have the money and those who may buy extras are p'd off at the big companies and are talking about taking their business elsewhere. Great marketing ploy!!!

Perhaps you're right but I know the day before it was made public all staff were told a date of how long this campaign is running. People on here really are all hyping it up thinking they know it all and I keep asking where you are getting the info from. No one answers :confused:

[Hannahly]

I was holding off responding for a few hours (hoping to jump onto another poster!) and I'm on the phone not laptop so don't have all my resources.

Breathe deep

In Europe many governments subsidized local produce to protect their own local markets from imports. In most cases it has been a disaster. It has instigated bad practices by farmers who have no incentive to follow good business and agricultural practices and who simply produce as they wish and get subsidised to the consumers detriment as prices are kept artificially high. I'm not a fan of subsidies. If business is getting thin change your practices, if cheaper milk is being produced overseas then rebrand and 'sell' to the customer why local produce should be favoured (I.e. Guaranteed quality/chemical free/Gmo free/support locals/environmental considerations). Don't expect to be bailed out just because it's always been what you've done. Cinematography/telcos/post/photography has all had to remodel their businesses because of modern advances.

[Californication]

Thanks to everyone who is supporting this! I've had visitors this afternoon and was thrilled and excited when I logged back on to see so many responses and that this was also on the BH FB page!

To everyone unable to support due to finances, I haven't thanked you, but I do understand. We live week by week as well, so I do understand that people can't afford to pay the extra for other brand milks. For me, I live in the south west of WA. The dairy industry is huge here, and so I will do whatever I can to support them. That's not a dig at anyone, just how I feel on this issue. If you can't afford to support them, you can't. And you shouldn't feel bad about that. We all have to put our own families first. But if you see any petitions or non Woolies/Coles branded milk at the same price, feel free to sign and buy!


I buy browns by default, $5.50 for 3L.

:eek: It's $3.49 on special here and under $4 normally!



Hi

Nobody wants to make those of us who are genuinely struggling feel bad about putting their family's need first.

I guess the point being made by a lot of posters is that this price rise will be 'expensive' in the long run and low-income earners will struggle even more.

If a boycott means lower prices in the future and a market fairer for farmers and consumers then it can't be a bad thing can it?

And if enough people who can afford to spend the extra money do so now, then the low-income earners can reap the benefits in the future.

Does that make sense?

Couldn't have said it better myself. And thank you BH Editor for running with this, doing the poll etc. I am stoked that my little crusade might actually make a difference!


I ask because all enquiries I have made and have actually read in the paper have stated that Coles have to pay whatever the milk industry sets it's price at meaning any enquiry will just show that Coles is making a loss.

They might be making a loss, but it will be short term. They have the monopoly. They can set the price. The dairy farmers down here have had a choice, sell the milk for 10 cents or tip it down the drain. Cows still need to be fed and milked, so they take what they can get. Coles/Woolies are forcing the prices to come down. They demand a price from their supplier, who shafts the producer in order to meet the demands.

WA Milk contracts are up for renegotiation in July-August. The timing of the milk prices in Coles and Woolies is not a co-incidence. If they sell their milk for less, other State milk companies (Browns, Masters, Pauls etc) will suffer. The dairy farmers will suffer. Ultimately we will all suffer and either have to have a cow in our backyards, pay through the nose for real milk, or drink imported UHT.

Some interesting articles:

http://au.news.yahoo.com/thewest/a/-/breaking/8779404/milk-price-war-may-ruin-wa-industry/

http://au.news.yahoo.com/thewest/a/-/breaking/8759134/independents-join-coles-milk-price-war/

http://fw.farmonline.com.au/news/state/dairy/general/corporate-milk-war-bombs-wa-dairy-industry/2072397.aspx

http://www.abc.net.au/news/stories/2011/01/27/3123073.htm

http://www.abc.net.au/news/stories/2011/02/02/3127744.htm

http://au.finance.yahoo.com/news/Dairy-farmers-welcome-price-abc-2303863566.html?x=0

[KatiesMum]

Malaga - its not about subsidies though.

its about bargaining power and predatory pricing behaviour by 2 supermarkets who have 80% of the market.

If a farmer cannot sell to WW or Coles, they cannot sell their product. Its that simple. Coles and WW prey on that ... they use that as a threat to beat down the prices beyond what the farmer/manufacturer can produce.

What will happen is that farmers will leave the land, and prices will increase substantially because their is a lot less being produced.

What IS produced will be sold to Coles and WW as 'home brand' because small manufacturers and producers have all gone out of business, and we end up with even less competition than we have now.

Its about the anti-competative and unethical behavior by our major supermarkets who control the market.

[Hannahly]

Thanks for article links... Late on this side of continent but will read through tomorrow

[Hannahly]

Malaga - its not about subsidies though.

its about bargaining power and predatory pricing behaviour by 2 supermarkets who have 80% of the market.

If a farmer cannot sell to WW or Coles, they cannot sell their product. Its that simple. Coles and WW prey on that ... they use that as a threat to beat down the prices beyond what the farmer/manufacturer can produce.

What will happen is that farmers will leave the land, and prices will increase substantially because their is a lot less being produced.

What IS produced will be sold to Coles and WW as 'home brand' because small manufacturers and producers have all gone out of business, and we end up with even less competition than we have now.

Its about the anti-competative and unethical behavior by our major supermarkets who control the market.

Price fixing and duoploy's I don't agree with no. But i don't believe the government should simply step in on a save the farmers platform, it should be a legal discussion to ensure that neither side is able to artificially price fix high or low.

[Californication]

Price fixing and duoploy's I don't agree with no. But i don't believe the government should simply step in on a save the farmers platform, it should be a legal discussion to ensure that neither side is able to artificially price fix high or low.

I don't think the Farmers want the Govt to save them, they just want a fair playing field. The Govt actually de-regulated the milk industry, so they are the ones that got us into this mess in the first place!

[share a book]

We avoid palm oil and buy as ethical as possible, we rarely buy eggs from the shops but if we do they are cage free eggs, but honestly on an income of around $20K a year it's hard to do everything.

[Californication]

We avoid palm oil and buy as ethical as possible, we rarely buy eggs from the shops but if we do they are cage free eggs, but honestly on an income of around $20K a year it's hard to do everything.

Totally off topic, but do you have a Farmers Market near you? We get 30 eggs for $7. Free range. And the fruit and veg is cheaper too. Just a thought :)

:backtotopic:

[mummaof4]

where are the farmers markets in WA? i'll have to google.. close by we have the spud shed but i didnt think there was anything else..

[Californication]

where are the farmers markets in WA? i'll have to google.. close by we have the spud shed but i didnt think there was anything else..

http://www.mindfood.com/at-farmers-markets-western-australia.seo

I don't know about Perth, but some things are heaps cheaper at the ones down here.

:)

[mummaof4]

thanks, im 30-40minutes from freo so it wouldnt be worth going there. i stick with spud shed for milk, bread, fruit & veg and its going well so far :)
still go to coles & woolies though for bits n pieces but i'll be sure to avoid milk! not hard as we barely go through 2lts a week.

[SalTheGal]

I can't remember who was asking (and am too lazy to go back to check :o ) I think Our Little Treasures... but in answer to your question:

The research I've done has shown that Coles stand to need to absorb 30mill per annum to sustain this price cut without affecting the farmers.... They can't/won't do this long term! (If they do then I'll happily eat my hat :p )

So when prices are up for renegotiation it will impact the farmers... and I am certain that milk will end up being brought in from off shore to sustain this price.... and if that doesn't happen then other prices will need to go up throughout the store to absorb the cost.

Of course Coles/WW are putting the right marketing spin on it now.... but its what will happen 6-12mnths down the track when all this hype is largely forgotten about that really worries me. :(

[share a book]

Totally off topic, but do you have a Farmers Market near you? We get 30 eggs for $7. Free range. And the fruit and veg is cheaper too. Just a thought :)

:backtotopic:

No Farmers Market here, but most of our eggs come from a friend who lives on a large property and has 6 chooks who have full run of their backyard through the day and go into the chicken coop at night which is quite large, each hen has room for whatever she needs to do and they aren't having to be touching, although they do choose to all sit in the one spot huddled together overnight but they have heaps of room to spread out. She sells us eggs for $2.50 a carton so it works out about what you're paying for yours. We get the fruit and veg cheaper, and it's organic too and most of it is from either our local area or other parts of Australia, we don't buy out of season fruit and veg, we just buy what's in season at the time which ensures we get it for the right price as well as getting a good variety.

[Californication]

Of course Coles/WW are putting the right marketing spin on it now.... but its what will happen 6-12mnths down the track when all this hype is largely forgotten about that really worries me. :(

I agree with all that you said, especially this. Coles are great spin masters. Their meals for under $10 shows this. The meals are only under $10 if you have half the stuff in your pantry! One of the recipes uses saffron which they costed at 20cents or something, but saffron is very expensive and I doubt everyone has it in their cupboard! It's a marketing ruse.

Coles and Woolies are interested in one thing. Profits. This would be a carefully marked out strategy - short term pain for long term gain. That's if they haven't put prices up elsewhere to cover the loss.

[IndigoJ]

Most definitely. I live close to a Dairy Farming area and i only buy "Dairy Farmers" brand products where available.

[melissakate]

done!!! we've even tried not to shop at woolies & coles. got to iga most of the time. it actually started with woolies when they stopped allowing visa/mastercard debit cards & now coles because of the milk war.

we've been buying dairy farmers as that's who deals with most of our farmers around this area. my mum's family were dairy farmers back in the day :D

[bheditor]

don't forgot to send friends the link to this thread if you think they'd like to show their support also!!!

[mazzie]

This has only been locked in for 6 months, and they are not paying the dairy farmers any less than they were before this price war started. The milk will probably go back up after that. They are taking the hit money wise to advertise their cheap milk and get people to shop at Coles and Woolies.

The $1 bread was just a speculation from the media it hasn't actually happened, nor have we even heard anything about it. (I work in a bakery in one of these supermarkets)

A lot of the stories have been exaggerated by the media - like the UHT milk from China.

[sweetseven]

I have always kept my eye out for discount milk prices. I used to preferrentially buy milk from a fruit shop @ $1.99 / 2L. When not nearby, I would opt for either supermarket milk ($3.08 / 3L) or servo milk ($5 / 2x2L).

Seeing the supermarkets drop to $1/ltr I saw a great. Now I didn't have to go out of my way to get milk from the fruit shop (about 20 minutes from my place).

In news of this I guess I should start going back to my fruit shop.

[share a book]

So I have to ask. Before this began, Smart Buy milk was $3.06 for 3L now the Coles brand is $3 for 3L and there is no more Smart Buy. So how is this any different to when Smart Buy was available and people were buying that?

[KatiesMum]

So I have to ask. Before this began, Smart Buy milk was $3.06 for 3L now the Coles brand is $3 for 3L and there is no more Smart Buy. So how is this any different to when Smart Buy was available and people were buying that?

No its probably not any diferent SUS ... just the advertising and marketing spin is pushing it.

The issues have always been the same though




This has only been locked in for 6 months, and they are not paying the dairy farmers any less than they were before this price war started. The milk will probably go back up after that. They are taking the hit money wise to advertise their cheap milk and get people to shop at Coles and Woolies.

The $1 bread was just a speculation from the media it hasn't actually happened, nor have we even heard anything about it. (I work in a bakery in one of these supermarkets)

A lot of the stories have been exaggerated by the media - like the UHT milk from China.

But what is not exagerated .. and is not a new problem .. is the predatory pricing behaviour of the big supermarkets. They can, do and have always used their bargaining power unfairly and overbearingly against small producers and manufacturers who get squeezed either way.

In this particular case, yes the supermarkets may be taking the price hit ... but it WILL impact on the next negotiated price, and the bargaining tactics used are already a major problem.

None of this is new - its just getting more airtime at the moment because they are trying to spin it.

[HarvestMoon]

So I have to ask. Before this began, Smart Buy milk was $3.06 for 3L now the Coles brand is $3 for 3L and there is no more Smart Buy. So how is this any different to when Smart Buy was available and people were buying that?

My guess is that Coles only brought in the $1/litre thing on milk so that they could faze out the smart buy with out anyone noticing they would be paying more for milk once its gone.

The $1/litre ends on the 27/7 then the prices will no doubt go back up to normal and people will be paying more for the Coles brand milk as there will be no cheap smart buy anymore.

[share a book]

Ok thanks for answering that. We don't really watch TV so I miss all these ads lol and we don't drink enough milk for it to have an affect on us as far as prices go but so many other families with a lot more people in the family would have no choice but to get whatever is cheapest at the time.

[Lil M]

OP - since when has full fat UHT milk not been suitable for under 2's?? It states it on the skim & low fat but not the full fat.

[mazzie]

The SB was a less quality milk than the Coles - But now they have removed the SB line and just gone with the better quality Coles milk (which is the same milk as DF with a different tag).

It hardly makes a difference really. The Dairy Farmers were being equally as undercut before.

[Californication]

OP - since when has full fat UHT milk not been suitable for under 2's?? It states it on the skim & low fat but not the full fat.

There have been a couple of threads on here about it (searched but couldn't find them), but I also read it in one of the Parenting mags (I think!). I know I read it somewhere. Though a quick google search has people saying it's OK, so maybe I'm wrong!


It hardly makes a difference really. The Dairy Farmers were being equally as undercut before.

But it does make a difference. They are already undercut and if the reports and info from the dairy farmers down here is true, they will go under if they don't get paid a decent price for their product. The timing isn't a co-incidence. Someone else said the promotion finishes at the end of July. Right when the WA contracts are up for renewal.

[mazzie]

There have been a couple of threads on here about it (searched but couldn't find them), but I also read it in one of the Parenting mags (I think!). I know I read it somewhere. Though a quick google search has people saying it's OK, so maybe I'm wrong!



But it does make a difference. They are already undercut and if the reports and info from the dairy farmers down here is true, they will go under if they don't get paid a decent price for their product. The timing isn't a co-incidence. Someone else said the promotion finishes at the end of July. Right when the WA contracts are up for renewal.

Yeah what I meant was that - it totally sucks that they are being undercut I was just trying to clarify that they are no more undercut than before iykwim?
Pura milk is pretty cheap at On the Run servo's, I usually get mine from there even though I work at Coles.. (FWIW)

[Lillynix]

I never buy supermarket branded milk. I like to support a local dairy here, so buy Ashgrove unhomogenised milk. YUM!

[mazzie]

No its probably not any diferent SUS ... just the advertising and marketing spin is pushing it.

The issues have always been the same though





But what is not exagerated .. and is not a new problem .. is the predatory pricing behaviour of the big supermarkets. They can, do and have always used their bargaining power unfairly and overbearingly against small producers and manufacturers who get squeezed either way.

In this particular case, yes the supermarkets may be taking the price hit ... but it WILL impact on the next negotiated price, and the bargaining tactics used are already a major problem.

None of this is new - its just getting more airtime at the moment because they are trying to spin it.

Very true - And unfortunately it will remain that way.. the same as everyday life. The rich get richer and the poor get poorer :/

[mazzie]

The best milk I have ever had was straight from the cow, from our local dairy growing up. :)

[Lillynix]

Same here, Mazzie!

[Annabella]

I buy raw milk so doesn't effect my choice in which milk to buy :)

[sweetseven]

Woolworths still have a sign up on their milk fridge stating that 5c / litre of white milk sold in Woolworths from Feb 6th-19th will be donated to dairy famers effected by the flood crisis.

I think it is misleading to have those posters still up when it is only the fineprint that shows the timeframe has expired.

[bheditor]

yeah - that sounds a bit dodgy

[Merla]

I'm in! If only we could legally buy raw milk.

You can legally buy raw milk, its just labeled as "bath mik" and says "for cosmetic treatment only" ;)


There seem to be a lot of people who drink a LOT of milk, actually looking like too much, 2L a day for a family of 3 is way too much milk to be consuming, thats 750ml a day each. I understand its harder for large famlies, but average consumption of milk should be about 250ml a day plus either a piece of cheese or some yoghurt.
Were a family of 3, with a 2 year old who has recently weaned herself onto cows milk and we go through about 3L a week of raw milk, 1/2 a tub of yoghurt and 1/4 a block of cheese and were all meeting our calcium requirements.

If an extra 50c per L is breaking the budget how did you afford milk before coles did this promo and how will you afford it after? I know money can be tight but for the sake of long term affordability why not keep paying what you were originally paying to keep prices steady and farmers in business. It doesn't make sense to me?

[Lemonhead]

I buy the milk that's kindest to my pocket. Same with eggs...I get the cheapest cage eggs, cheapest chicken etc... *my* families finances come first.

[*Cj*]

Since woolworths started the price war I have been getting brand name milk for $1.57 for 2lt. :D it only has a few days till it's use by.


Since when is UHT no good for kids under 2?

[Merla]

I buy the milk that's kindest to my pocket. Same with eggs...I get the cheapest cage eggs, cheapest chicken etc... *my* families finances come first.

I understanding the need to put your family first, however by saving say $3 on your groceries your encouraging cruelty and abuse to some innocent animals. I understand tight finances, trust me, but do your really NEED a block of chocolate, bottle of soft drink, or coffee over the welfare of the innocent?

[Pinkzy]

My dad works for Parmalat so I either buy Physical or Trim (I only drink No-Fat milk) and a 1L bottle lasts me almost a week.

DH buys 2L of the Coles brand milk every day or every second day though because it's a lot cheaper than the brand names. I doubt any of this info would make him change his ways.

[Lemonhead]

I understanding the need to put your family first, however by saving say $3 on your groceries your encouraging cruelty and abuse to some innocent animals. I understand tight finances, trust me, but do your really NEED a block of chocolate, bottle of soft drink, or coffee over the welfare of the innocent?

We don't struggle with finances at all, so that's not the issue. I'm just a tight@ss. And yes, I do need that chocolate :yes: it makes me happy and my happiness and that of my family will always triumph over the happiness of a chicken. Animals are here for eating, thats just my opinion and I don't expect anyone else to have to feel that way just like I shouldn't be expected to care if I don't want to.

[Merla]

We don't struggle with finances at all, so that's not the issue. I'm just a tight@ss. And yes, I do need that chocolate :yes: it makes me happy and my happiness and that of my family will always triumph over the happiness of a chicken. Animals are here for eating, thats just my opinion and I don't expect anyone else to have to feel that way just like I shouldn't be expected to care if I don't want to.

I have no issue with the killing and consumption of meat, that is not the issue here. The issue is supporting unethical practices that harm animals for no gain other than to reduce the bottom line. If you can afford the extra few $$ why not support humane treatment of chickens and hard working aussie farmers, nothing happens in a vacuum.

[jayemkayare]

I buy free range/organic meats/eggs whenever possible. Yes I pay more for my produce but less hormones etc and healthier animals is what is best for my family in the long run. Old (and I personally believe true) saying, you get what you pay for.


Sent from my iPod touch using Bub Hub

[Lemonhead]

I have no issue with the killing and consumption of meat, that is not the issue here. The issue is supporting unethical practices that harm animals for no gain other than to reduce the bottom line. If you can afford the extra few $$ why not support humane treatment of chickens and hard working aussie farmers, nothing happens in a vacuum.

Because its not a cause I feel I want to support. I would rather support the ethical treatment of humans before I worry about a chicken or a cow. It's not up there on my list of worries.

I admire people that are doing things for this cause but I am not one of them, I do other things instead :)

[Hootenanny]

I buy free range/organic meats/eggs whenever possible. Yes I pay more for my produce but less hormones etc and healthier animals is what is best for my family in the long run. Old (and I personally believe true) saying, you get what you pay for.



Absolutely agree and I'm a total chocoholic but if it came down to eating chocolate or a chicken suffering in a cage I'd be missing out on chocolate I'm afraid.

[Hootenanny]

Because its not a cause I feel I want to support. I would rather support the ethical treatment of humans before I worry about a chicken or a cow. It's not up there on my list of worries.

I admire people that are doing things for this cause but I am not one of them, I do other things instead :)

You make your own decisions but I would hardly call denying yourself chocolate on one occasion so you could buy free range eggs as unethical treatment of humans;)
What caged chickens go through is inhumane and the sooner they legislate against it the better, personally I don't think I could actually eat an egg from a caged animal knowing the conditions it lays in, let alone what the poor mother of that egg went through.
If you think you can stomach seeing where cage eggs come from and how they get there you coud have a look here (http://www.all-creatures.org/anex/chicken.html) but it comes with a distressing warning.

[Pokeysmum]

Luvmyboys, I'm with you 100% on this!! I too need my chocolate, but would never buy cage eggs and also buy free range chicken/meat. I believe it all tastes better :)

[Deserama]

Well at the moment I am having to buy limited amount of fruit and vegies in order to feed my family. The prices are so high that I'm forced to buy less fresh and more 'tinned'. For instance, if I was to give my kids an apple a day for luch for school..that's 4 apples a day...pluse an apple each for the two littles, that's 6 apples a day that my kids eat alone. That's not including myself either.

So people need to understand that when you're having to buy like 3kgs a certain piece of fruit or whatever and the prices are really high, then you're going to have to find your savings elsewhere!

I am having to limit my children's fuit intake and add tins of fruit into their diet to make up the difference.

I WILL NOT compromise on milk as well. Sorry! I see the milk prices as a windfall right now so that I can afford more fresh fruit and vegies!

I'm sorry for the dairy farmers...but they aren't my problem. My family is!

[BigRedV]

I buy Aussie farmers direct milk :)

[soexcited]

So ever since this thread I have been buying dairy farmers milk. I figured I also had to start buying other brand yoghurt, cheese etc I do see how people on a tight budget can have trouble. For a 2 litre milk alone it is an extra $1.69.

Funny story - the first time I did it I got a really friendly teenage boy serving me at Coles and he had the most amazing customer service AND packed my stuff without having a competition as to how many items he could jam into one bag :laughing:. Then I got to my car and had stupidly parked in an awkward spot and had DS in the trolley. I don't put him in the car straight away cos obviously I don't want to leave him there when I take the trolley back. This kind lady offered to stand at my car and hold the trolley to stop it from moving while I unloaded my groceries. DH has been nagging me to buy the name brand stuff and not rip off farmers for ages and he told me it was karma for finally doing the right thing :laughing: