Coles (owned by Wesfarmers), as you probably know, was the supermarket which started the so-called milk war.
It was determined to capture a bit more market share from Woolies.
The $1 a litre price has no doubt been good for consumers but it will drive the dairy farmers out of business. We will lose another Australian industry and all our milk will come from abroad.
A group of shareholders tried to get Wesfarmers to hold an extraordinary meeting to discuss the matter but the request has been denied.
Read on . . . .

Wesfarmers accused of arrogance over milk pricingAAP
May 20, 2011, 1:37 pm tweet0EmailPrint
The West Australian ©

Dairy farmers say Wesfarmers has acted with extreme arrogance in refusing a request from shareholders to hold an extraordinary general meeting to discuss Coles' ongoing milk price war.

Australian Dairy Farmers said shareholders had written to Wesfarmers chairman Bob Every seeking a meeting to consider two resolutions.

The first called on the company to explain the Coles' pricing strategy while the second demanded an end to the campaign which has resulted in milk being sold for $1 a litre.

Wesfarmers wholly owns Coles supermarkets.

"Instead of allowing its shareholders to ask questions and express their views, Wesfarmers called in its lawyers to block any free discussion of Coles' cut-throat campaign," ADF vice president Adrian Dury said in a statement.

"It's extreme arrogance to act as though they are not answerable to shareholders or anyone else."

Mr Dury said current prices were unsustainable and $1-a-litre milk didn't generate enough money to support farmers, processors and retailers.

Wesfarmers knocked back the request for an extraordinary meeting on legal advice.

"The Wesfarmers board had independent legal advice that the ADF's proposed resolutions related to management matters and would be legally invalid," Dr Every said in a statement on Friday.

However, the chairman said he understood Coles' price strategy was of concern to dairy farmers and he invited them to discuss the issue with the company's managing director.

"Wesfarmers is totally committed to a strong and enduring relationship with our suppliers and dairy farmers, and believe the best approach to dealing with the milk pricing issue is through direct discussion," Dr Every said.

Dairy farmers have been up in arms since Coles started the price war in January, drawing in rivals including Woolworths.

Earlier this month, federal independent senator Nick Xenophon called for a minimum farmgate price to be introduced to protect farmers.

Senator Xenophon is part of a parliamentary committee examining the impacts of the ongoing price war.

The production of highly-nutritious milk is resource, time and labour-intensive - i.e. costly - and yet, people happily pay more per litre for low-food-value soft drinks...

Would anybody stand for it, if Coles/Wesfarmers waged a similar war against Coca Cola or Pepsi!?

Without getting too involved (I have several good friends just take up finance positions at Coles) - there is absolutely nothing wrong with Wesfarmers denying an extra-ordinary meeting.

Legally they have no obligation to do so.

Crikey I pay around $5 for 2 litres of locally produced milk from a couple of farmers who got so sick of the crap prices offered to them that they set up their own plant,
Guess what, people are willing to pay a premium for good quality locally sourced products coz these fella's are going gangbusters
Like I keep saying, keep away from the big 2 (Coles and Woolies) and support your local businesses  :)

adelcrow wrote on May 21^st, 2011 at 12:33pm:

Crikey I pay around $5 for 2 litres of locally produced milk from a couple of farmers who got so sick of the crap prices offered to them that they set up their own plant, Guess what, people are willing to pay a premium for good quality locally sourced products coz these fella's are going gangbusters Like I keep saying, keep away from the big 2 (Coles and Woolies) and support your local businesses  :)

$2.45 for a gallon of milk here.
I can't be bothered to work out if I am paying more or less than you.

adelcrow wrote on May 21^st, 2011 at 12:33pm:

Crikey I pay around $5 for 2 litres of locally produced milk from a couple of farmers who got so sick of the crap prices offered to them that they set up their own plant, Guess what, people are willing to pay a premium for good quality locally sourced products coz these fella's are going gangbusters Like I keep saying, keep away from the big 2 (Coles and Woolies) and support your local businesses  :)

wow why didnt you support your local book shops then if you are that concerned...last you were bragging just how much you spent on the internet..and in Singpore rather than buy here..

I think you are dreaming myself.

What locally owned bookshops? Borders and Angas and Robertson were owned by an American company that went belly up  :P

Andrei.Hicks wrote on May 21^st, 2011 at 12:37pm:

adelcrow wrote on May 21st, 2011 at 12:33pm: Crikey I pay around $5 for 2 litres of locally produced milk from a couple of farmers who got so sick of the crap prices offered to them that they set up their own plant, Guess what, people are willing to pay a premium for good quality locally sourced products coz these fella's are going gangbusters Like I keep saying, keep away from the big 2 (Coles and Woolies) and support your local businesses  :) $2.45 for a gallon of milk here. I can't be bothered to work out if I am paying more or less than you.

Just did the quick calc.
My equivalent cost of milk in San Diego is 67c per litre.

Is there ANYTHING that isn't expensive in Australia in comparison????

Andrei.Hicks wrote on May 22^nd, 2011 at 10:39am:

Andrei.Hicks wrote on May 21st, 2011 at 12:37pm: adelcrow wrote on May 21st, 2011 at 12:33pm: Crikey I pay around $5 for 2 litres of locally produced milk from a couple of farmers who got so sick of the crap prices offered to them that they set up their own plant, Guess what, people are willing to pay a premium for good quality locally sourced products coz these fella's are going gangbusters Like I keep saying, keep away from the big 2 (Coles and Woolies) and support your local businesses  :) $2.45 for a gallon of milk here. I can't be bothered to work out if I am paying more or less than you. Just did the quick calc. My equivalent cost of milk in San Diego is 67c per litre. Is there ANYTHING that isn't expensive in Australia in comparison????

Possibly meat...depending on where you live in Australia (city vs country)