Supermarkets encouraged to pass on milk price increase

Australian Dairy Farmers – the country’s peak representative body for dairy farmers – says it hopes Coles and Woolworths pass a recent 10 cent per litre increase in the price of home brand milk on to dairy farmers.

The increase comes as dairy farmers battle high input costs, drought and flood clean-up, threatening to send some broke.

The ADF notes that after the quiet lift in prices, two litres of milk at either supermarket is now priced at $3.20, up from $3.00 less than a fortnight ago.

“With almost half of Australia’s dairy farmers either battling drought or recovering from floods, this is a timely increase, and we hope it’ll flow back to the farmgate,” ADF president Ben Bennett said.

For more than a decade, supermarkets have been discounting milk, constraining the money flowing back through the supply chain.

“The fact is, when people buy milk, the supermarkets, processors, and everyone in between take a cut – leaving dairy farmers as price takers in the supply chain.

“This season is extra tough, dairy farmers are facing skyrocketing feed and input costs. Many are losing money because it costs more to produce the milk than what they’re paid for it.

“So, while the supermarket price increase is modest, that 10c/litre would be welcomed by farmers.

“We hope supermarkets and processors will pass it on to help keep our fragile industry afloat, and dairy on the table of every Australian family.”