Australia's competition authority announced a broad-based investigation of the Australian dairy industry. The lowering of the price of milk of Murray Goulburn large dairies and the New Zealand co-operative Fonterra was triggered of the investigation in April of this year by almost 20%. Many milk producers got into financial difficulties after the reduction in the payout price because they could produce no more break even at reduced prices.
The Australian competition and Consumer Commission (ACCC) will start in November with extensive studies in various fields. Examined are including contracts and agreements, risk-sharing, competitive behaviour, negotiations and trade practices and their impact on the world and retail prices. Results are expected in mid-2017. In the meantime, the global milk prices have recovered. The price for Vollmichpulver rose last week to 18.9% and 42% above the level now in February.
