COLES and Aldi supermarkets have followed Woolworths’ lead and increased the price of their discount milk.
The price of Coles brand and Aldi Farmdale two and three litre milk has risen by 20 and 30 cents respectively.
Coles Group chief executive Steven Cain said the supermarket supported proposals to make Australia’s dairy industry more sustainable.
“We are continuing to explore long-term solutions with government and industry stakeholders,” he said.
“However we know that many dairy farmers cannot wait for structural reform to be delivered so we are moving to provide relief right now.”
Aldi managing director of buying Oliver Bongardt said the decision to increase fresh milk prices was reached in recognition of the significant issues affecting the dairy industry and the fact that broader government-led policy reform was unlikely to occur in the short-term.
“Aldi has already taken substantial action over recent months aimed at addressing issues confronting the Australian dairy sector,” he said.
“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.”
Australian Dairy Farmers chief executive David Inall praised both companies.
“Farming families put tireless effort and resources into producing a quality product and there is no question that supermarket discounting has had an incredibly demoralising and negative financial impact on the Australian dairy industry over the last eight years,” he said.
Federal Agriculture Minister David Littleproud welcomed the announcements.
“It’s time farmers received fair reward for their effort,” he said.
“These people produce our food.”