The impacts of supermarket price decisions on the dairy industry

The impacts of supermarket price decisions on the dairy industry

3 November 2011

© Commonwealth of Australia 2011
ISBN 978-1-74229-546-6

View the report as a single document - (PDF 3387KB)

View the report as separate downloadable parts:

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Membership of Committee (PDF 179KB)
Glossary and abbreviations (PDF 55KB)
Summary and recommendations (PDF 83KB)
Chapter 1 - Introduction (PDF 144KB)

The supermarkets' price decisions
Referral and conduct of this inquiry
Outline of the report

Chapter 2 - Overview of Australia's dairy industry (PDF 635KB)

Recent history
The structure of the industry and varying levels of exposure to retail prices

Chapter 3 - Private label milk in Australia (PDF 213KB)

Growth in private label milk post-deregulation
Current private label contractual arrangements
Differences between private label and branded milk
Why do processors continue to supply private label milk?
Implications for influence of the major supermarkets on the dairy industry

Chapter 4 - Early impacts of the pricing decisions (PDF 697KB)

Demand for milk
Changes in the volume and value of milk sales since January 2011
Assessment of early information

Chapter 5 - Impact of the retail price cuts at the farm gate (PDF 433KB)

Impact on processors and possible flow on effects
Contracts between farmers and processors
Relationship between the January 2011 price cuts, farm gate prices and contract arrangements

Chapter 6 - Predatory pricing and the ACCC's investigation (PDF 147KB)

Predatory pricing
Initial calls for an ACCC investigation
The ACCC's investigation
Transparency of ACCC investigations

Chapter 7 - Competition law (PDF 242KB)

Anti-competitive price discrimination
Misuse of market power and predatory pricing
Divestiture and limits on market share
Mergers and acquisitions
Is there a need to review the Competition and Consumer Act?

Chapter 8 - Relative bargaining power and other issues in the supply chain (PDF 152KB)

Collective bargaining
Current dispute resolution mechanisms for grocery suppliers
Calls for a new code of conduct
Calls for an ombudsman

Government Senators' Additional Comments (PDF 82KB)
Additional Comments by Independent Senator Nick Xenophon, Nationals Senator John Williams, Liberal Senator the Hon. Bill Heffernan, Democratic Labor Party Senator John Madigan, and Australian Greens Senator Christine Milne (PDF 124KB)
Submissions received
Additional information received
Tabled documents
APPENDIX 2 - Public Hearings and Witnesses (PDF 12KB)
APPENDIX 3 - Government response to the first interim report (PDF 220KB)

For further information, contact:

Senate Standing Committees on Economics
PO Box 6100
Parliament House
Canberra ACT 2600

Phone: +61 2 6277 3540
Fax: +61 2 6277 5719