The Australian Competition and Consumer Commission (ACCC) will launch an inquiry to look into competition and fair trading aspects in the dairy industry.
Its dairy industry inquiry will investigate competition among milk processors, contracts between processors and farmers, international supply markets along with profitability of dairy farms.
As part of a 1-year inquiry ordered by the Australian government, the competition watchdog will study the key issues faced by the dairy industry.
ACCC chairman Rod Sims said that the regulator is looking for feedback from interested sections on issues across all product and geographical markets in the country’s dairy industry.
The inquiry according to Sims will closely look into the key competition and fair trading issues prevalent in the Australia dairy industry.
Sims said: “As a formal inquiry, the ACCC will also have the ability to compel information from parties including processors and retailers. Our aim is to present a really clear picture of the issues facing the market today, and make any recommendations to ensure it remains fair and competitive.”
Apart from milk processors competition and contracting practices, the ACCC will also be examine the price availability and other market information.
It will also study the effect of private label products, including pricing on the dairy industry, supply options for global markets and important factors that affect the profitability of dairy farms.
ACCC Commissioner Mick Keogh said: “The ACCC will hold public forums in a number of dairy producing regions so we can speak with dairy farmers about their concerns, and we will release further information about these forums in the coming months.”
Besides the inquiry, the ACCC is continuing its investigations into the recent price cuts to dairy farmers for milk solids by Murray Goulburn and Fonterra Australia.
Earlier this month, the ACCC issued a statement expressing its concern over the competition issues resulting from the proposed merger of The Dow Chemical Company and E.l. Du Pont de Nemours and Company (DuPont).
