Australian Dairy Farmers (ADF) today welcomed news that the Australian Competition and Consumer Commission (ACCC) has instituted proceedings in the Federal Court of Australia against Coles Supermarkets Australia.
ADF President, Noel Campbell, said the ACCC will allege that Coles has engaged in unconscionable conduct towards 200 of its smaller suppliers in breach of the Australian Consumer Law.
“ADF welcomes the ACCC’s decision to take Coles to the Federal Court of Australia for using undue pressure and unfair tactics in negotiating with suppliers” Mr Campbell said.
“Coles’ alleged behaviour towards suppliers includes providing misleading information and taking advantage of their superior bargaining position.
“We very much look forward to the result of the court case, given ADF’s strong track record of advocacy to the ACCC since the introduction of the $1 per litre retail milk price.
“This latest action by the ACCC once again highlights the need for a Mandatory Code of Conduct, including the establishment of an independent Supermarket Ombudsman with penalties to balance the excessive power of the major retailers.
“ADF will continue to lobby Government as well as engage in dialogue with the major retailers about the code.”
Mr Campbell said ADF has been a vocal and consistent opponent of $1 per litre milk.
“The simple fact is that milk priced at $1 per litre is unsustainable and does not give a fair return to dairy farmers and others in the supply chain,” he said.
“Farmers want to work cooperatively with the supply chain – we must all work together to achieve the best outcome for the consumers we all serve.”
Mr Campbell urged other small businesses impacted by unconscionable conduct to consider contacting the ACCC.
Media Contact:
Karl Liebich, Media Officer
T: (03) 8621 4200
E: media@australiandairyfarmers.com.au