The continued discounting below cost of milk by Coles and Woolworths at $1 per litre is having a widespread effect in the community.
We are hearing of a downturn of farm gate returns on milk of 1.15cents, or more, to producers as their contracts are renewed. This, when inflation is over 3 per cent. The distributor is obviously not absorbing the down-turn in branded milk sales. Sales of milk, according to one milk vendor, on home runs and to small shops and other outlets, is down by $30,000 this year. This is a substantial amount if multiplied by all the milk vendors in Armidale.
If it continues, it will lead to a loss of more dairy farmers, the closing of more corner stores and the loss of milk vendors. This will hit shut-ins, those with transport difficulties, give less choice of friendly retail outlets for snack foods, dairy products like ice cream etc, and sundry other items in local areas. Milk vendors supply a range of products besides milk.Thus, the social fabric of Armidale will be even more diminished.
The advent of extended trading hours and Sunday trading by supermarkets has already had a profound effect. With the growth of Armidale on its fringes, the disappearance of these services will create urban deserts.
Deregulation has not been for the benefit of the community. There is a need for at least some regulation to return.
Dr Roger C Chubb
MSc, PhD,
Armidale
