NSW Farmers is appalled that the market power of Australia’s supermarket duopoly will remain unchanged, following the result of an inquiry into milk price discounting.

The Senate Economics References Committee has tabled its final report into the impacts of supermarket price decisions on the dairy industry.

NSW Farmers Dairy Committee Chair Terry Toohey says of the seven recommendations made in the report, not one requires any direct action be taken.

"Disappointingly, the report recognised the "very strong position" of the supermarkets, and the instability and ambiguity of contracts negotiated with processors, yet has made no direct attempt to level the playing field.

"The majority of recommendations call for reviews to be undertaken. We fear many dairy farmers will go out of business waiting for the findings which may not result in any decisive outcome.

NSW Farmers has evidence that farm gate prices have dropped since the milk price war began on Australia Day and fears that trend will continue.

"A recent survey of NSW Farmers dairy members showed prices paid to farmers since the milk price war began on Australia Day have dropped, so far costing the State’s dairy industry $15 million," Mr Toohey said.

NSW Farmers was hopeful of an outcome that would have reduced the market power of the supermarkets, and potentially increased farm gate milk prices.

"Unfortunately, what’s resulted is a lose-lose outcome for the dairy farmers in NSW," Mr Toohey said.

Contact: Olivia Suzanski (Media Adviser) 0429 990 218