THE past week has seen milk prices in the news like never before, with consumers, strangely, complaining that they are too low.
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The dairy industry has been warning for a number of years that the price war between the major supermarkets would eventually drive dairy farmers out of business, and now we’ve reached a major tipping point.
Across the country – including here in Bathurst – premium milk products are quickly selling out while cheaper home brand options remain in the fridges.
It appears to be the consumers’ way of telling supermarkets they want dairy farmers to receive a fair price for their product, but we wonder just how long that anger will last. Consumers are notoriously fickle creatures and the supermarkets will be banking on them quickly reverting to type and seeking the cheapest milk option rather than the most ethically sound.
Of course, it’s not the first time we’ve seen this problem. Five years ago, the local Mars plant announced its future was uncertain, blamed, in part, on the pressure being applied by supermarkets’ home brand products.
Just as we’ve seen with milk, Mars was finding it could not match the major supermarkets on price and too many consumers were satisfied to sacrifice a little in quality to keep a few coins in their pockets.
Three years ago Simplot also pleaded for consumers to think more about the impact of their spending habits when the local plant faced possible closure because it was struggling to compete with cheap imported canned goods.
Now it’s the dairy industry’s turn.
Many household budgets are tight and there are plenty of families who do need to watch every dollar when they do their weekly shop.
But Australia needs to remain a country that grows things and make things, and our local industries can only survive with the help of consumers.
It’s worth remembering that every dollar we save could be costing us a lot more in the long run.