Coles, Aldi increase milk prices after public backlash

22 Mars, 2019, 12:07 | Auteur: Auguste Feret
  • Aldi and Coles to raise milk prices by 10% in support of dairy farmers

The supermarkets confirmed on Tuesday that the price of their two litre and three litre fresh milk would increase by 20 cents and 30 cents respectively, putting an end to their $1 a litre pricing.

Coles and Aldi yesterday announced they will increase the price of their respective private label milks by 10 cents.

ALDI said it had accepted cost increases from its milk processors in recent months 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".

"I have met with dairy farmers and processers right across the State and have listened to their heartfelt stories of their struggles and fears for their future in NSW".

The milk war is over.

Queensland Agriculture Minister Mark Furner has welcomed the news and said there had never been a more important time to support our farmers.

Coles Group chief executive officer Steven Cain said his company is endeavouring to help make the dairy industry more sustainable, alongside government and industry stakeholders.

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"However we know many dairy farmers can not wait for structural reform to be delivered so we are moving to provide relief right now".

Aldi's Managing Director of Buying Oliver Bongardt said the decision recognises the "significant issues" now facing the diary industry.

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.

In addition to this latest initiative, with the help of customers, Coles had committed $16 million since the beginning of the financial year to support farmers and producers doing it tough due to the impact of drought.

Australian Dairy Farmers is describing it as relief for the entire industry, but is now calling for the supermarkets to consider increasing the prices of other own branded products including cheese and yogurt.

Drought, a downturn in crucial export markets, and high feed, water and electricity prices have made it hard for farmers to compete since a global downturn in mid-2016.

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