New entrants to the milk price war are poised to attack competitors with ever-cheaper dairy products.
(Costco), a discount supermarket, is ready to sell its own brand of milk, which is cheaper than the three liters of milk it now sells at 96 cents a litre.
According to the Weekly Times (The Weekly Times), the news was announced last week, with the obvious challenge to Woolworths and Coles, which currently have their own brand of milk at $1 a litre.
Last week, good market general manager Patrick. Noran (Patrick Noone) told the American Chamber of Commerce that his company intended to sell "less expensive [milk] than it is now, but the same quality."
Woolworths and Coles`s cheapest milk is their own 3-liter bottled milk, which sells for $3. In addition, the cheapest milk in some IGA stores is 3 liters of Dairy Choice, for 3.99 yuan, or 1.33 yuan per litre.
Although the price of three liters of milk in a good market is now as low as 2.89 yuan, it hopes to lower the price further, raising concerns among dairy farmers.
Dairy farmers fear the price cuts could trigger a full-scale price war with Woolworths and Coles, which could further shrink margins.
"tell them to go to hell," Victoria dairy farmer Daryl Hoy (Daryl Hoey) told the Weekly Times.
"the companies that offer cheap milk to the market make me sick."
Queensland dairy farmer Ross McGinnis (Ross McInnes) angrily said those processors who signed agreements that led to cheaper retail milk prices were not friends with Australian dairy farmers.
"this year, between 5 percent and 6 percent of farmers in Kunzhou will leave the business," he said. "if we cut prices again, that number will only increase unabated."
At present, there are nine warehouse supermarkets in Australia, located in New, Victoria, South Australia, the Australian Capital Territory and Queensland.
