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Coles forced to pay out millions after leaving dairy farmers high and dry

Article image for Coles forced to pay out millions after leaving dairy farmers high and dry

Coles has agreed to pay Norco dairy farmers over $5 million after allegedly failing to pass on the full price rise it charged consumers for milk.

The Australian Competition and Consumer Commission (ACCC) says Coles has promised to pay the dairy farmers about $5.25 million after the supermarket giant didn’t fully pass on a 10c per litre price rise of Coles branded fresh milk.

ACCC Chairman Rod Sims tells Steve Price they were prepared to take Coles to court over the issue.

“When the 10 cents came along because they’d pushed up the price of milk, they in fact only paid the Norco farmers 3.5 cents a litre, rather than the 10 cents that we allege they should’ve paid.

“The good news is a whole range of farms will get basically, on average… $10,000 in their hand within the next week.”

Click PLAY below to hear the full interview

Dayboro dairy farmer Joe Bradley tells Ben Fordham Coles’ actions are very disappointing.

“They misled the farmers very, very badly. We took them at their word that they were going to pass it all on.

“You really wonder, are the supermarkets trying to help the farmers or are they just trying to kick them to death at every turn they get?”

Click PLAY below to hear the full interview

Image: Getty

STEVE PRICE
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