The Queensland Dairyfarmer's Organisation (QDO) has expressed extreme disappointment at the decision by the ACCC to not pursue Coles for predatory pricing of its house brand milk.

"We're extremely disappointed by this decision from the ACCC, announced in a Friday afternoon press release four days before the sixth month anniversary of the discount war started by Coles," said QDO President Brian Tessman.

"The conclusion is premature because a lot more of the impact from this cut-throat discounting is still to come.

The major impacts on farmers will hit home in the coming months, as farmers seek to renegotiate new contracts for the coming year."

The ACCC's proposed less than two weeks ago to allow dairy farmers associated with Australian Dairy Farmers Ltd to continue to collectively bargain with milk processors for a further 10 years.

The ACCC Chairman expressed the view that farmers could negotiate with processes over milk prices.