Supermarket milk price hike to help farmers

Supermarket milk price hike to help farmers

Woolworths announced it will introduce a special range of drought relief milk at $1.10 per litre from mid-October.

In a statement, Woolworths said it knew the 10 cent levy "won't solve the wider structural issues facing the dairy industry, given Woolworths branded milk accounts for less than five per cent of Australia's total milk production".

On Thursday, Coles said it would also increase the price of its 3L Own Brand milk from $3 to $3.30 until the end of the year.

Coles said it and its customers had already committed nearly $12 million to drought relief.

'Coles has always supported our Aussie farmers.

Lifting the price of milk to help farmers: Woolworths Group Ltd (ASX: WOW) has made the decision to raise the price of house brand three-litre milk by 30¢ to $3.30 at all stores nationwide to support the drought stricken dairy farmers.

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In a statement, Woolworths said it would work with dairy farmers to set up a drought relief committee that would provide independent oversight to ensure the extra 10 cents per litre goes to dairy farmer in drought-affected areas. Money raised by the increase will be donated to drought-affected farmers. He applauded Woolworths to show the leadership regarding it.

'Congratulations Woolies but shame on Coles - I've asked them to come talk to me and talk to farmers, they haven't, ' he said.

Woolworths Director of Fresh Food Paul Harker said customers were asking the supermarket giant to help farmers during the hard times.

Until the new drought relief range hits the shelves, the supermarket has increased its existing three litre milk from $3 to $3.30 in Queensland, New South Wales, ACT and Victoria to ensure drought relief funds start flowing through to dairy farmers as quickly as possible.

But Mr Richardson said it was positive that the devastating impact of the drought had been acknowledged by the supermarkets.

"We need to give farmers more bargaining power and help them get a fair return out of the market so they aren't going cap-in-hand to processors and retailers".

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