Dairy industry calls for supermarkets to raise discount milk prices

The national dairy advocacy body has called for supermarkets to lift the retail price of discount milk by 40¢ a litre, with farmers to receive the increase, in a bid to guarantee the struggling industry’s longevity. Australian Dairy Farmers today amplified calls for grocery giants to increase the retail price of discount milk from $1.10 a litre to $1.50 per litre and pass the price hike back to producers. ADF chief executive David Inall said dairy farmers were struggling under high operational costs and in need of a milk price increase. “The price farmers pay for energy, and water and fodder for their cows remains high, but the retail price for their milk has stayed stubbornly low for almost a decade,” he said. “If we are to stop farm exits and hardship, then retailers need to increase the price of their store brand retail fresh milk to $1.50 per litre with the increase going back to farmers via their processors.” The renewed calls for a milk price hike comes after Coles, Woolworths and Aldi last year lifted the price of its respective private label milk products by 10¢ to $1.10 per litre. Despite the three major retailers raising prices, Federal Agriculture Minister David Littleproud echoed Mr Inall and said dairy farmers must receive a better price for their milk. “It is only fair that retailers play their part in giving farmers a leg up during this difficult time,” he said. “This is a way of making amends for damage to the industry during the years of $1 milk prices. “It will ultimately be up to each retailer to determine how much support they are willing to provide to our farmers.” A Coles spokeswoman said the supermarket giant was “committed to ensuring dairy farmers receive a fair price at the farm-gate and securing a sustainable future for the Australian dairy industry”. However, she said increasing milk prices posed potential consequences. “Widespread increases in dairy prices risk harming the industry by reducing demand for Australian dairy product and making them uncompetitive against cheaper imported products,” she said. According to ADF data, Australia’s dairy industry has lost 1500 dairy farms in the past nine years, including almost 500 between 2017-18 and 2018-19. Woolworths and Aldi have been contacted for comment.