BRISBANE - Australia??s The Courier Mail highlighted the plight of the "humble corner store" that it says "could face extinction," the result of the country??s aggressive supermarket pricing wars.

"The current $1-a-liter milk boon for consumers could equate to price pain down the track if corner stores fold," the paper wrote over the weekend.

As a result, convenience stores were expected to begin Senate hearings this week during which they would testify that "they are fighting for survival" as dairy discounts reach 33 percent, led by the supermarket chains.

Supermarket chains Coles, Woolworths, Aldi and Franklins have slashed their prices for milk, eggs and bread. In fact, Australian consumers pay less for those staples than they did 10 years ago, with milk pricing cheaper than soda and water.

According to National Association of Retail Grocers chief Ken Henrick, convenience stores have desperately tried to price match, but with little success.

"In one region we've seen a 30 to 40 percent drop in milk sales," Henrick said, explaining that milk is a "multiplier" product ?" consumers patronize a store to purchase milk but frequently come out with a number of other items.

"All this is being taken away from the corner store, where people traditionally would have stopped to buy milk," Henrick said.

University of New South Wales consumer law expert Frank Zumbo said convenience stores are critical to consumer protection, because they keep the large retailers honest.

"If we are left with just two players, prices will ultimately go up," Zumbo said.