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IN THIS SECTION:
In the February quarter farm institute insights:
A PDF version of the publication is available for download here
Feature Article
A fog descending on Australian agricultural markets
Mick Keogh, Australian Farm Institute
On the 22nd of July, 2011, the Australian Competition and Consumer Commission (ACCC) handed down its findings arising from an inquiry into milk pricing in Australia. The inquiry was initiated when a major supermarket chain commenced heavy discounting of its house brand milk, selling it for $1 per litre, and this was quickly followed by several other supermarket chains. The inquiry was held to determine whether the supermarket chain had breached Australian competition laws, and the issue was also the subject of a Parliamentary inquiry. The ACCC inquiry addressed two issues – firstly whether the supermarket chain was engaging in milk price discounting mainly for the purposes of reducing competition, or secondly whether this was a case of ‘predatory pricing’ (where a business that has substantial market power sells products for a sustained period at a price below the cost of supply) again with the intention of lessening competition.
Read more hereIn the Pipeline
How will future productivity growth be achieved in Australian agriculture?
Discoveries
Research finds that transport costs for Australian agricultural product represents between 4% and 48.5% of farmgate value.
In My View
For this section of farm institute insights, ‘in my view’, the Institute will invite comments on a particular topic from two politicians with differing policy viewpoints. In this February edition of farm institute insights, Senator Nick Xenophon and Senator Richard Colbeck give their opinions on the effectiveness of Australian competition laws in protecting farmers and small businesses. Readers are invited to continue the discussion on the Institute’s blog.
Crossing the Divide
A brief review of media misconceptions about rural Australia. In this edition of farm institute insights, the live cattle exports issue is examined.
Farm Policy News
In this edition, we question whether the government will deliver on water infrastructure upgrades; find lean meat is back on the menu; report news from Durban and cuts to Indonesia’s live cattle quotas.
Institute Activities
A review of Australian Farm Institute activities including media interviews and presentations, including information on the upcoming Conference – Managing the future of Australian farm land.