Too true

from w Dick Smith alerts readers on what is happening with the capitalist businesses such as Aldi and Costco and Australian products. Too true. Aussie Dick Smith attacks Aldi and Costco May 11, 2012 Read later Ads by Google Free Forex Guidewww.GFT.com.au Four Simple Steps to Making Your First Spot Forex Trade. Start Here. AAP Entrepreneur Dick Smith says foreign retail giants Aldi and Costco are pushing local producers out of business with "capitalist" business models. Mr Smith says competition pressure from foreign-owned stores makes it harder for local producers to sell to Australian supermarkets Coles and Woolworths. German-owned Aldi had a greater turnover of stock and consistently offered below-cost products from overseas, he told a Senate inquiry into Australia's food-processing sector in Canberra on Friday. Advertisement: Story continues below Local producers couldn't match the low prices and were pushed out. "Then they put the price back up again," Mr Smith told the committee hearing. The operator of Dick Smith Foods, which markets Australian-grown products, said these pricing practices made it hard for him to compete against famous brands - including Cottee's, Arnott's, Golden Circle and Edgell - that were now foreign-owned. It was a characteristic of capitalism that it didn't create competition but removed it, he said. He also blamed Aldi and US chain store Costco for last year's milk price war, sparked by Coles slashing the price of milk to $1 a litre. "I think Coles and Woolworths are reacting to the situation where we have encouraged Aldi and Costco to come here," he said. "Coles have lost market share to Woolworths and have to get it back. It's just capitalism working." Mr Smith said had seen tonnes of oranges dumped in Mildura and had intervened to stop an Australian beetroot farmer from burying his crop earlier this year. He bought the crop, canned it for 90 cents per can, and offered it to Coles and Woolworths for $1. But Aldi started selling a similar product for 75 cents, and the Australian supermarket chains were forced to match the price. "It normally sells for $1.50," Mr Smith said. "I presume from now on all of the beetroot will come from overseas." Mr Smith said he was reluctant to complain to the Australian Competition and Consumer Commission because it was likely nothing illegal had taken place. © 2012 AAP