Last week I focused on the flip side of the headline story that Woolworths had a 28 per cent leap in half year profits.

Almost 696 million dollars.

And remember, this is Big W, Dick Smiths, Dan Murphys, a stack of pubs.

The question has to be asked, how has this result been achieved.

Firstly, there's nothing in it for the customer.

And then the supplier is also being dudded.

And not a law in the land to protect either.

For example, a standard two litre bottle of Coke in Australia, $2.96.

In America $1.22 Australian.

A book retailer told me the best price he could get from the publisher for Backyard Blitz was $18.71.

Woolworths retailing it for $14.95.

The reason this happens is that Woolworths have power and they use it.

They screw the supplier.

As one person who works with the major retailers put it to me, "I remember a time when they were happy to work with a five per cent margin. Woolworths are now demanding up to 17 per cent plus promotional support."

Now as you know, when you've got two outfits controlling almost 80 per cent of the grocery market, the butcher, the grocer, the baker are run out of business.

And they want the newsagent and the chemist.

And the book retailer.

And 750 million dollars of negative inventory, that is Woolworths have 750 million in the bank for goods that they've sold but they don't own because they haven't yet paid the supplier.

So you get big half year profits by exploiting the consumer, killing off small business and making the supplier pay.

Try the dairy farmer.

The farm gate price for milk in Australia is the lowest in the world.

It's hardly risen for the last 15 years.

About 34 cents a litre, which it was 15 years ago.

So just think how much the farmer has lost in that time.

The same litre at the supermarket, what, up to $1.97.

And yet the ACCC, supposedly looking after everyone's interests, tells us we've got a vigorously competitive retail market.

So why has the retail price of milk increased by over 90 per cent in Australia since 1990.

But increased by nothing for the farmer in the same time.

And why has the international price of milk in the same time risen only by 50 to 60 per cent.

Why are Australian families paying 40 to 45 per cent higher prices for milk today than anywhere else in the world?

And remember, the farmer's getting the same as he got 15 years ago.

Could it be that by allowing two companies to dominate almost 80 per cent of the grocery market that Australian families are getting dudded both ways?

Woolworths and Coles have such dominance that they can force whatever price they like on the supplier.

Then as well that dominance allows their business inputs, rent, stock, bank fees, to be achieved at ridiculously lower prices than would be available if normal competitive forces were at work.

In many instances Woolworths are paying a tenth of the rent being charged to a small outlet on the other side of the mall.

Massive discrimination against independent grocers, independent book retailers, independent liquor outlets in the rent they pay and the price at which they have to buy their product.

And that's why if we keep going the way we are, every grocer, butcher, baker, newsagent, book retailer and liquor seller will be out on the street.

Anthony told me he bought his bread from Goodman Fielder, $3.04 a loaf.

The same bread at Woolworths, two loaves for $5.

Helen runs a general store, Dan Murphy's have got Tooheys Extra Dry Stubbies $30.90 a case.

Helen has to buy through Tooheys, 39.99.

Then she's got to add the GST, add her costs, try and find a profit.

Wholesalers forced to sell, whether it's milk or flowers or fruit or bread or liquor, to Coles and Woolworths at such prices they can retail a mile more cheaply than others buying from the same wholesaler.

And then they can screw the landlord on rent as well.

So there's a farmer selling milk at the same price he was 15 years ago, but the retail price has gone up 90 per cent since 1990, way ahead of what's being paid internationally.

And we've got an Australian Competition and Consumer Commission which neither protects competition nor the consumer.

The extent to which Australian small business and consumers are being dudded is mammoth.

But don't expect anyone in Government to care.

That's if they even bother to find out.