Australian Bureau of Agricultural and Resource Economics


Australian Competition and Consumer Commission; Australia's trade practices authority

Bargaining group

Group of farmers who bargain collectively rather than individually with a processor

Branded milk

Milk sold under the processor's brand name


Practice of a number of firms successively setting prices based on other firms' prices


Processor jointly owned by a group of farmers


Cents per litre


Tasmanian service delivery arm of Dairy Australia, investing farmer levies and other funds to support the Tasmanian Dairy Industry

Drinking milk

Milk sold for drinking as opposed to having been used to make butter or cheese


More responsive to price changes

Farmgate price

Price paid by processors to farmers

Food security

The physical availability and access to food as well as its affordability

Generic milk

Milk sold in supermarkets under the supermarket's brand name

Home brand

Another term for 'generic milk'

Loss leader

Product sold below cost to attract customers into a store

Market milk

Raw milk used to make drinking milk

Manufacturing milk

Raw milk used to make cheese, butter, yoghurt etc


A market situation where there is a single buyer of a product or service from a large number of sellers


National Association of Retail Grocers of Australia; industry body representing small grocery stores


Milk that has been filtered through a very fine ‘sieve’ to separate the milk-sugar (lactose) and minerals from the milk protein

Price discrimination

Charging different prices to different buyers

Private label

Another term for 'generic milk'


Manufacturers who make dairy products from raw milk

Slotting fee

Payment by processor to supermarket to have their product displayed prominently in supermarket stores

Step down

Feature in a contract between processor and farmer when under certain conditions the price paid will be increased

Step up

Feature in a contract between processor and farmer when under certain conditions the price paid will be increased


Tasmanian Institute of Agricultural Research


Trade Practices Act, legislation governing competition in Australia


Situation when a buyer with market power forces down the price they pay and this forces up price charged to other buyers

Wholesale price

Price paid by supermarkets to processors. Differs between generic and labelled milk.

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