30 Mar 2011

Supermarkets appear before inquiry over milk war

1:56 pm on 30 March 2011

Supermarket giants Coles and Woolworths have appeared before a parliamentary inquiry in Australia to explain their ongoing milk war.

In January, Coles slashed the price of milk to $A1 a litre for its generic brand, ABC reports.

Coles says the cost-cutting will not affect the long-term viability of farmers, as sales have increased.

But Woolworths, which claims it matched the discounted price only to remain competitive, says it is worried about the long-term future of dairy farmers.