WAFarmers considers boycott motion

30 Mar, 2012 07:00 AM
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WAFARMERS are assessing a possible motion to boycott Coles and all other Wesfarmers subsidiaries as a result of what if calls 'predatory pricing'.

At the WAFarmers Annual General Meeting last week, WAFarmers Dairy Section spokesman Greg Chapman raised the motion - "That due to Coles' predatory pricing policy, WAFarmers encourages their members and the wider farming community in general, to boycott Coles supermarkets and all Wesfarmers subsidiaries with particular emphasis on CSBP and WFI."

The motion was discussed at length during the AGM and was eventually moved as a procedural motion for the WAFarmers executive to assess.

When Farm Weekly contacted WAFarmers a spokesperson said the lobby group was still considering the motion.

"The motion expresses the significant concern of WA's dairy farmers in relation to the retail pricing strategy implemented by Coles," the spokesperson said.

"The motion was referred to the WAFarmers executive as a procedural motion.

"At this stage, the executive has not had the opportunity to consider the motion, nor its implementation."

In October last year Farm Weekly reported calls for a boycott on Wesfarmers products over issues with Coles' pricing from the Red Meat Action Group, which was supported by Mr Chapman.

"Wesfarmers has forgotten its heritage," Mr Chapman said at the time.

"Where did they come from?

"Who are a lot of their shareholders?

"Their shareholders should be screaming blue murder here and I am very disappointed that they're not."

One audience member at the AGM asked why Woolworths was not included in the motion and Mr Chapman said, and Farm Weekly has confirmed this with Woolworths, that Woolworths believes the $1 a litre campaign was unsustainable.

Woolworths said it is only running the $1 a litre milk in order to compete with Coles.

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READER COMMENTS

Kanzi
31/03/2012 4:33:03 PM, on Farm Weekly

Hang on, I'm both a shareholder in Wesfarmers and a farmer. I see no good reason at all to boycott them. Goyder certainly overpaid for Coles, but the fact that it remains Australian owned and that they have turned the place around to make it competitive, is all good news. Coles have not reduced the price which they pay processors. Most milk in Australia is in fact used for manufacture, so those prices drive the market.

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