The Australian Food and Grocery Council (AFGC) today urged the Federal Government to offer “similar assistance” to Australia’s food industry as it offers the automotive industry when considering this year’s Budget. In its Budget 2012-13 Submission, the AFGC is calling on the Federal Government to get behind the food and grocery manufacturing sector in the upcoming Federal Budget process. The submission specifically calls for a Supermarket Fair Trading Code of Conduct and a Supermarket Ombudsman... ...Read more »

Australian Competition and Consumer Commission (ACCC)’s chairman Rod Sims has announced that the ACCC will not appeal the Full Federal Court’s decision to allow Metcash’s acquisition of the Franklins supermarket business. In a media statement released today, Mr Sims said that the ACCC took action to block the proposed acquisition by Metcash of the Franklins supermarket business because it considered that such an acquisition was likely to result in a substantial lessening of competition in the... ...Read more »

Australian national grocery wholesaler, Metcash, has reported a 14.3 per cent decline in profit to A$94.4 million for the six months to 31 October 2011. Metcash’s executive Andrew Reitzer said that challenging operating conditions have persisted due to reduced consumer confidence, highly value-conscious consumer, and continuing deflation. The profit decline takes into account “significant items and discontinued operations” associated with the company’s Franklins acquisition. Excluding these... ...Read more »

Coles supermarket chain has responded to reports that its new ‘Active Retail Collaboration’ supply chain scheme constitutes uncompetitive behaviour. Coles’ Active Retail Collaboration technology provides a breakdown of the estimated amount of stock it will require from any particular supplier at any point of the year. However, recent media reports claim that some Coles suppliers believe the scheme’s primary focus is making money rather than streamlining the supermarket’s supply chain. Coles... ...Read more »

One of the world’s biggest food processors, Heinz, has moved to deprecate news reports suggesting hostility between Heinz and Australia’s leading supermarkets who are its major customers. Articles in both the Sydney Morning Herald and The Age this week claimed Heinz had “hit out at (supermarket) home brands” and had been “forced to rework strategy” because of the impact of growing home brand label presence in Australia’s supermarkets. Heinz told Australian Food News today that both... ...Read more »

The Australian Food and Grocery Council said today that commitments by both of the major political parties to reforming anti-dumping laws in Australia will benefit Australia’s food manufacturers. Dumping occurs when goods are imported into the domestic market at below production cost or through unlawful subsidies from other foreign governments. The AFGC said that smaller Australian food manufacturers are hit hard by these practices. Yesterday, the Federal Opposition Leader Tony Abbott launched... ...Read more »

Treasury has told a Federal Senate inquiry that reducing unnecessary barriers to market entry and clamping down on anti-competitive behaviour should be a priority for Australia’s food processing industry. In its submission to the Senate Select Committee on Australia’s Food Processing Sector, the Treasury pointed out that the food processing industry in Australia tends to be concentrated, with several major players and a number of smaller competitors. The Treasury said, “This market concentration... ...Read more »

The Australian Food and Grocery Council (AFGC) is urging the Federal Government to act quickly to keep Australia’s food manufacturing industry alive. The AFGC has called on the Australian government to “remove unnecessary regulation and duplication, such as food labelling changes, and reduce costs of doing business”. The AFGC also says it is “critical” that Australian government fast-tracks its National Food Plan. The AFGC’s CEO Kate Carnell says several food and grocery manufacturing... ...Read more »

New Zealand’s Commerce Commission has decided not to hold an inquiry into milk prices after arguing that there is enough competition at retail and wholesale level in the market. Dairy giant Fonterra, formed in 2001 to help promote New Zealand’s dairy exports, collects over 90 per cent of the country’s milk production and sets national prices. The Commission reviewed the way prices were set in New Zealand’s milk sector after complaints that retail prices were too high and... ...Read more »

The Australian Competition and Consumer Commission (ACCC) has found that Coles’ decision to discount house brand milk does not breach competition law. The ACCC decided that discounted prices for house brand milk benefitted consumers and did not constitute anti-competitive behaviour. The decision was based on evidence that the purpose of Coles’ price reductions was to increase competition with other supermarkets. “The major impact of the reduction in milk prices since January seems... ...Read more »