A clever vet student, Cassandra MacDonald, from NSW has created this fabulous infographic to set the record straight. It’s only five minutes (don’t worry, the 13 minutes on the YouTube counter is wrong) but wow, does she pack a punch! Watch this space for more to come about this remarkable young woman.
Brilliant work Cassandra! Thanks for sharing Marian.
I’m going to share on Facebook.
LikeLike
Great, Julie! Cassandra’s cleverness is not sponsored by a Goliath so it’s up to all of us little people to spread the word!
LikeLike
It’s a great video for sure but beyond the Coles issue it says to me that there are too many dairy farms in NSW and QLD producing too much milk for the fresh milk market they are supplying. As well, as an industry, these farmers have left themselves completely vulnerable because they have not invested in new capital (processing) for alternative markets. Milk is hardly unique in this regard: http://www.weeklytimesnow.com.au/article/2013/02/27/561382_horticulture.html
http://www.abc.net.au/rural/news/content/201210/s3616387.htm
The other issue that I still cant get my head around is how the fresh milk issue is directly relevant to the southern markets where there are alternatives and the grower owned cooperative(s) dont have to sell to Coles or Woolies. 50% of MG revenue is from overseas – if Coles wants to pay crap prices, why not ignore them and sell overseas?
LikeLike
Hi Ian,
There are a few factors that influence the seasonal oversupply issues in nsw/qld. Firstly milk companies win contracts, force farmers to expand to meet the contracts and then just as everyone hits the target, they lose the contract. Framers then have to rapidly cut production whilst the new winner ramps up production.
Competition policy has forced the loss of manufacturing capability as part of the big companies taking over the little ones. Vics have the manufacturing advantage over us too.
Its all a big mess and there is no easy solution. Also it doesnt take too big a flood to cause a large undersupply scenario.
I think companies are scared not to bid for the contracts in case they lose their space on the shelf altogether.
LikeLike
Thanks Julie
Same as for watermelons, grapes, oranges, wool, wheat, lambs, you name it… and an unfortunate consequence of commodity selling. Farmers become price takers rather than price makers.
I’m still not sure why ‘the south’ don’t just tell Coles to go jump and sell pretty much everything overseas. Maybe the international prices are not much good as well.
LikeLike
“Maybe the international prices are not much good as well.” Well, actually, the international prices are good at the moment in US dollar terms. The high Australian dollar is cruelling the pitch for us, along with all Australian exporters.
LikeLike
This needs to be on NATIONAL TELEVISION! I will NOT buy WW or COLES milk ever again.
LikeLike
I have tried to get the today show and also A Current Affair to watch it. I’m trying to get my sisters words heard all over.
LikeLike
Hi Nicola did your sister do the drawings also they are amazing. I’ve been buying milk from Aussie farmers direct for a few years now to support the farmers. I’ve shared this on my Facebook and hope it changes people’s minds. Thanks Cassandra you are very talented let’s hope u get a bigger chance to change the way the farmers are paid. Well done awesome talents for a business of your own. Jodie Victoria
LikeLike
Love the illustrations. I always buy Harvey Fresh 🙂
LikeLike
Great work!!!
LikeLike
Reblogged this on Reading, Writing and Riesling and commented:
This explains a lot about supermarket shopping and marketing – I think the big chain supermarkets also contribute to this loss of sustainability a the farm gate by reducing choice on shelves- now so many “home brands” and not many branded choices forcing you to select the the shops home brand. Shops are large – choice is disappearing.
LikeLike
This article provides some additional info regarding MG in Victoria. Notably the Coles $1 a litre market is only $5 of its milk pool. And remember MG built a plant in Melbourne specially for this market, presumably with the knowledge of its shareholders, the farmer’s.
http://www.theaustralian.com.au/business/companies/murray-goulburn-dairy-farmers-wonder-where-it-all-went-wrong/news-story/e441a56f69fbdfa98ca5da4e27ee09f0
LikeLike
Thanks Neil but it is a subscriber only article and I can’t access. I would like to add that I am in
WA in a rural town that has a now dwindling population of dairy cows… The local big supermarkets influence my buying decision by controlling the brands they put on the shelf- less and less branded products so much more “home brand” at sometimes one fifth of the price of branded products- this has to squeeze the Australian producer. And ultimately this will effect local jobs.
LikeLike
Check your superannuation fund, chances are you own Westfarmers shares who own Coles. How as comsumers do we indirectly support this type of actively?
LikeLike
Brilliant explanation and I’m so pleased that the term ‘corporate greed’ was utilised. It should be spoken about more often but these days gets supplanted by fluffy business euphemisms to distract and obfuscate. So, apart from exploitation of the primary producer add to that Coles’ and Woolworths’ at-arm’s-length commitment to the gambling industry and one can see a picture of exploitation of vulnerable members of the community in the name of good business practises. And they’ll deny any harm being done by them until the cows come home.
LikeLike
I pay $4.55 for 2 litres of non halal non homogenized milk 3 times per week happily. Anyone willing to pay less for milk than they pay for water who cant see something is seriously dodgy needs to give their head a good shake.
LikeLike
Is woolies the same?
LikeLike
Yes, they are. Coles was the first to introduce $1 milk and Woolies said that although the price was unsustainable, it had no choice other than to follow suit.
LikeLike
Well explained. Woolworths are just as bad. Please don’t forget that. its a pity all the processors haven’t got the guts to work together and stand up United against these 2 greedy pigs and refuse to roll over for them.
LikeLike
Pingback: The Ultimate Rabbit Hole #69 -
Consumers are more powerful than Coles! Once we realise this we can go into shops/supermarkets like Coles and refuse to buy the products that disadvantage dairy farmers and other farmers! When consumers combine like they did after Waleed Aly called for a boycott of coles brand milk, sales of Coles brand milk dropped. Hang onto your power. Use it wisely. We can help dairy farmers at our end.
LikeLike
I agree, Briony. The signal that shoppers are sending is priceless. Wayne and I are so grateful that consumers care. And if we can use that support from everyday Aussies to bring about real change because they have triggered interest from govts, ACCC and regulators it will make a huge lasting difference.
LikeLike
Pingback: $1 milk “not worth it” to students – laurenchoo