The term “Milk Price War” has been mentioned many times since the two main supermarkets began to discount their Milk prices.
Even the Australian Parliament got involved … this was one newspaper headline in February 2011
PARLIAMENT will investigate a milk price war after concerns the major supermarkets are attempting to drive out competition.
Coles and Woolworths are engaged in a milk price war that has driven down the price of some milk to $1 a litre. ($2 for 2 litres)
I have often wondered what they were really on about, as it was only normal discounting in my mind.
Today I checked it out, to see how much of a war it really was, or is.
I did a post in November 2009 about the real price of Milk, and I stated these prices:
$1.79 Local vegetable store two litres of Milk.
$2.17 Woolworths Homebrand Milk Whole 2 Litres
This post is at: www.abcdiamond.com.au/price-of-milk
Todays price (September 2011) in Woolworths is $2.00 for 2 litres.
A drop in price of 7.8%.
Dairy Farmers Whole Milk 2 Litres was $3.39 in November 2009
and in September 2011 it is $3.17
A drop in price of 6.5%.
Can this really be called a Price War, that needs Parliamentary investigation, with such small price changes ?
In my situation though, I now pay $1.69 at my local shop, so the two main Supermarkets still have some way to come down in price, to match their actual price competitors.