Supermarket giants Coles and Aldi have agreed to raise the price of one of their milk lines by 10 cents per litre in a short-term bid to help struggling dairy farmers.
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Coles and Aldi announced on Tuesday night that it would enforce the price rise on its 2L and 3L varieties from Wednesday, March 20.
Coles will raise the price on its Coles Brand milk while Aldi will add the 10c to its Farmdale milk.
Both supermarkets noted this was a short-term measure.
The dairy industry has welcomed the move, saying it is another positive step forward.
ALDI Australia managing director Oliver Bongardt noted government-led policy reform for the dairy industry would take time so the supermarket had decided to make the move.
Coles Group Chief Executive Officer Steven Cainalso agreed, saying dairy farmers could not wait for reforms to happen. It will work with its processors to ensure the extra 10 cents goes back to the farmers who help make Coles Brand milk.
Coles recognises that price increases alone will not solve structural challenges facing Australia's dairy industry, and acknowledges the commitment of the Federal Government to deliver longer-term industry-wide solutions,
- Mr Cain said.
Read more: Dairy farmers milk price plea
Today's announcement of the price movement reflects constructive discussions with our milk processors who have worked with us to find a way to pass on the additional proceeds, in full, to the dairy farmers supplying them with fresh milk,
- Mr Bongardt said.
The move comes after Lyne MP David Gillespie and NSW Primary Industries Minister Niall Blair urged the supermarkets to follow Woolworths, which raised the price of its 2L and 3L own brand milk by 10 cents per litre in February.
Mr Blair had met with the supermarkets and even wrote to Coles directors and the top 20 shareholders to ask them to rethink their support for dairy farmers.
Initially he was disappointed with their response, but on Tuesday night he was full of praise for their move. Mr Blair also said the fresh milk and dairy advocate and the fresh milk crisis taskforce - which a Berejiklian government would implement, would further assist the industry.
"We know that this small price increase isn't a silver bullet but it's a good start and I congratulate Coles and Aldi on this important first step," Mr Blair said.
Together, we can all make a difference. Together we can ensure that NSW dairy farmers don't just survive here in NSW but grow and continue to produce some of the world's best fresh milk and dairy products.
"So please, get out there and get some milk."
Mr Bongardt said the supermarket had already been doing its bit to assist the industry.
"ALDI has already taken substantial action over recent months aimed at addressing issues confronting the Australian dairy sector. This has involved us accepting cost increases from our milk processors to cater for drought and associated issues, and we have been able to do so until now without passing higher prices on to the consumer," he said.
"ALDI will work with processors to ensure that prices for milk reflect the current market conditions and support the long-term viability of the dairy industry."
Mr Cain said Coles was continuing to explore long-term solutions with government and industry stakeholders to help make the dairy industry more sustainable.
"Coles sources 100 per cent of our Coles Brand fresh milk from Australian farmers, many of whom are struggling as the impact of drought compounds ongoing challenges in the dairy industry," he said.
Belinda-Jane Davis
Passionate about community news
Passionate about community news
