NSW: Dairy deregulation decreases competition: Amery

AAP General News (Australia)
04-10-2001
NSW: Dairy deregulation decreases competition: Amery

The New South Wales government says dairy deregulation has increased retail milk prices
and reduced competition in the industry.

New South Wales Agriculture Minister RICHARD AMERY says Australian Competition and
Consumer Commission figures on dairy prices are misleading.

An ACCC analysis of deregulation yesterday found milk prices in the nation's supermarkets
are down by an average 22 cents a litre on three-litre family packs.

Some supermarkets are offering generic brand milk about 40 cents a litre cheaper than
before deregulation.

But Mr AMERY says the ACCC's figures are misleading.

He says the ACCC measured within the past 12 months only after the fixed price to farmers
was deregulated.

But he says retail milk prices were deregulated in July 1998 and since that time consumers
have paid considerably more for their milk.

Mr AMERY says under the regulated system, New South Wales residents paid $1.16 a litre
but according to the ACCC report, a litre of milk costs between $1.19 and $1.42.

AAP RTV sal/rp/wz/mjm

KEYWORD: DAIRY NSW (SYDNEY)

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