James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Hansard source

The government understands that dairy farmers are understandably frustrated that the retail price of milk has declined in real terms since retailers adopted their milk-pricing policies. The government notes, however, that the Australian Competition and Consumer Commission's recent dairy inquiry report found the price set by retailers has no direct relationship with farmgate prices received by farmers. The ACCC noted that if supermarkets were to increase the price of milk, processors would still not pay farmers any more than they have to in securing milk and that the farmgate prices received by farmers would be unlikely to increase. The government is currently considering the report's recommendations.