Coles Pocketed 65% of The 10c/L Milk Levy

WOW, Coles just never fails us, We need a more powerful ACCC.

https://www.abc.net.au/news/rural/2019-12-05/coles-pays-norco-dairy-farmers-$5m/11768478

Coles introduced 10c/L milk levy on 20 March 2019, promised to fully passed on to Australian farmers, then from 1 April, they only passed on 3.5c/L

The ACCC's investigation focused on claims that when an unrelated 6.5 cents per litre increase commenced on April 1, 2019, Coles reduced its payments to Norco under the 10 cents per litre retail price increase from 10 cents per litre to 3.5 cents per litre.
Norco is a milk co-operative comprised of 194 member farms in northern New South Wales and Queensland.

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Comments

  • +3 votes

    ACCC's investigation focused on claims that when an unrelated 6.5 cents per litre increase commenced on April 1, 2019

    It was April Fools Day…

  • +16 votes

    I mean, there were no shortage of people calling the initial 10c 'levy' a PR exercise from the very beginning. I don't know why anyone would be shocked.

    • +1 vote

      Is anyone shocked? I'm confused how you got that out of it
      I don't see anyone expressing that here or in the article

    • +4 votes

      I'm a bit shocked that Coles can say the extra charge is for the farmers and then only give a small portion to them.
      But Coles has form in the dishonesty department, remember their "freshly baked bread" that was made in Ireland and shipped across frozen?
      I avoid Coles whenever possible

  • -1 vote

    They are passing on $0.035 when they don’t have.

    • +3 votes

      I don't think the issue is the philanthropic effort because yes, 3.5c > 0c. It's that they advertised to consumers (to get people to buy) very heavily the 10c, and was only actually passing along 3.5c.

    • +3 votes

      Well given that they stated that the additional charge was explicitly to help the farmers they should have to pass it all on if they had any integrity whatsoever. Coles clearly do not.

      Would you be ok if you bought "free range eggs" and subsequently found out only 1 in 3 of the eggs was sourced from free range chickens?

  • +1 vote

    A milk company a friend works for that suggested the "10c to farmers" promo to WW was told at the end of the campaign "we'll be keeping that 10c"

  • +3 votes

    Works out as $27k per farm. That’s a nice pay rise.

    • +1 vote

      Well if the numbers above are correct (3.5c out of 10c) then it should have been over $80k per farm if Coles were honest.
      $27k is a whole lot less nice than $80k

  • +7 votes

    So, Coles has done what just about every charity in the world does? Take money for a cause and only pass on a portion of it and keep the rest as “administrative costs”

    Can’t say I’m shocked.

    • +3 votes

      Exactly, people would be shocked to read financial reports of some charities, most are freely available online. This works best if it’s a cause that’s seen as sacred, that any negative comment against said cause/charity makes you a horrible person.

      •  

        Do they release the actual data or is it just Auditor Certification?
        Also, who audits the auditors?

        • +1 vote

          https://www.acnc.gov.au/charity
          They have to report it. It’s all online. Often the details don’t tell the full story. You might have advertising staff at the charity on 60k but a lot of the perks of the job include shopping vouchers, entertainment budget, accommodation, fleet costs etc. All very creative book keeping. Often the administration costs are 50% or more of the money raised. So it’s very lucrative business.

    •  

      Other charities exist solely for their charity work, so every single administrative overhead needs to come from the donations. I strongly doubt Coles had to setup a separate hr/finance/accounting/payroll/etc division to work out how to donate this money. It is clearly unethical theft

      • +3 votes

        Other charities exist solely for their charity work

        Yeah, I'm not buying it. Have seen plenty of examples of "charity organisations" executives driving around in what most would consider inappropriately expensive vehicles and living in houses that would wipe out some 3rd world nation's debt if sold.

        Many, if not most, charity organisations are set up solely to look after the interests of the individuals running it and not for the welfare of the those they are reporting to help. They are set up as tax dodges for the most part or a place to hide wealth.

        Coles is no different. But to suggest that other charity organisations are there solely for their contribution to their cause, is naive at best.

  • +4 votes

    Shame shame shame

  • +8 votes

    Curtis Stone learnt some tricks off George Calombarris.

  • +3 votes

    Btw…the surcharge is 20c/L at the moment.

  •  

    WOW, Coles just never fails us, We need a more powerful ACCC.

    The ACCC consists of lunatics who believe in an economic theory that states the economy works better when Government doesn't regulate it. So they don't believe that they should exist as an organisation.

    The head of the ACCC has stated that privatisation, specifically electricity and ports, has "severely damaged" the Australian economy. Despite this the idiot still believes that the theory of privatisation reducing prices and being efficient is sound.

    There is no evidence to support this theory.

    Which is why he also said that there is a danger that the public will "lose faith" in the theory as though it was a religion. This was in 2016 and the nutcases theories still haven't started predicting reality.

    • +1 vote

      Less regulation, more revenue. That sounds reasonable.

    • +1 vote

      Sounds like another nutcase idea for the Greens to abolish the ACCC, because it doesn't fit into their pure political ideology.

    • -2 votes

      Capitalist theory has led to the longest period of growth and progress of human society in recorded history.

      You want to turn your back on it, go to Venezuela and see how they're faring.

      •  

        It doesn't matter how long your preferred ideology lasts if it doesn't last and survive for all our potential future generations.

        Besides, a lot of people are familiar with boiling frog syndrome.

        • -1 vote

          On a site about bargain hunting that only happens because of market competition and sellers being able to set prices… this. Lol.

  • +2 votes

    Is anybody actually surprised ? These grubs Coles and Woolworths wouldn't pay for their own mother to have life saving surgery to remove cancer.

  • +1 vote

    Coles introduced 10c/L milk levy

    Coles can’t legally impose a levy.

  •  

    Haven't seen it on the commercial news stations guess there frightened by reporting this they may lose coles massive advertising budget

  •  

    Administration costs!

  •  

    We should be able to demand all our accumulated flybuys credits be paid in cash, and have nothing to do with them ever again.

  • +5 votes

    I think many people are missing the point that Coles is making.
    i.e. That a 6.5c per litre price rise came through from Norco at the same time.
    Coles simply factored this into the 10c rise in the retail price already notified.

    So in reality the whole 10c per litre is still going back to the farmers.
    Just not exactly the way Coles promoted it.

    Its all in the "accounting" and Coles is not keeping the 6.5c at all.

    So misleading advertising - YES
    Are the farmers getting an extra 10c - YES
    But 6.4c is part of a price rise from Norco.

  •  

    Bring back regulation on essential services/products.

    •  

      Then you will be complaining about the high cost of regulated products and that we need competition to drive down prices……Hohum

      •  

        Given my experience with green slips, de-regulating the banking industry, electricity, etc….nothing has come good of a so called free market. I’d rather subsidise a government entity to run these services, inefficient as they maybe, than greedy corporates who will gouge every dollar whenever they can. Look at private health insurance, biggest rort there is and we’re all paying for it.

  •  

    is that why the Coles branded 3L jug went from $3.30 to $3.60 recently?

  •  

    Boycotting Coles is not the answer. We choose what we buy. We choose only to buy whatever is on sale. Else we do not buy a full priced item from them.