The Australian Competition and Consumer Commission has announced a delay in presenting its findings on the proposed acquisition of two Saputo milk processing plants by Coles, according to eastAUSmilk.
The ACCC was due to present its final findings on the proposed acquisition on September 14, but eastAUSmilk said it had delayed the report indefinitely, pending receipt of further information from the parties involved (Coles and Saputo).
EastAUSmilk CEO Eric Danzi said eastAUSmilk had several times during the ACCC review made submissions raising possible consequences of a completely unregulated acquisition.
EastAUSmilk had urged the ACCC to ensure, if the acquisition proceeded, that conditions were attached to it which protected dairy farmers and other milk processors from the effects of reduced competition which would arise.
In July this year, ACCC published a Statement of Issues outlining their competition concerns and asked of further submissions.
The two milk processing plants in question are at Laverton North in Victoria and Erskine Park in NSW, and the ACCC expressed serious concerns at reduced competition in the central coast area of NSW and impacts on other processors.
In eastAUSmilk’s view, this impact could be felt from central NSW up into southern Queensland.
EastAUSmilk said the ACCC would announce a revised decision date in due course.
Meanwhile, Australian Dairy Farmers is calling on the ACCC to oppose the proposed takeover of two Saputo processing sites by Coles.
ADF does not want to see the proposed deal disadvantage dairy farmers or reduce competition in the dairy supply chain.
ADF believes that if the ACCC approves the acquisition, Coles will have a vertically integrated supply chain from farmer to processor, to retailer, to consumer.
“The deal will not improve transparency, bargaining power imbalances, information sharing, or competition — not for farmers, processors, other milk brands, or consumers,” ADF president Rick Gladigau said.
“If the ACCC does approve the Coles acquisition of Saputo sites, ADF calls on the ACCC to ensure that Coles and Saputo provide enforceable undertakings to protect dairy farmers,” he said.
