As of March 20, the two supermarkets added 10¢/litre to each bottle, making their two-litre bottles $2.20 and three-litre bottles $3.30, with both vowing to pass the extra money on to Australian dairy farmers.
Coles Group chief executive officer Steven Cain said his company was endeavouring to help make the dairy industry more sustainable, alongside government and industry stakeholders.
But he said farmers could not wait for such long-term changes to be made.
‘‘We are moving to provide relief right now,’’ he said.
Aldi’s buying managing director Oliver Bongardt said the decision recognised the ‘‘significant issues’’ currently facing the dairy industry.
‘‘This solution is a short-term measure and will allow our processors to immediately pass additional funds to their dairy farmers outside of normal seasonal adjustments,’’ he said.
Federal Agriculture Minister David Littleproud said the announcement meant ‘‘breaking the back of the $1 milk model’’.
‘‘I’ve made it one of my key commitments to break the $1 litre milk model for our dairy farmers,’’ he said.
‘‘It’s time farmers received fair reward for their effort. These people produce our food.’’
Peak dairy farmer group Australian Dairy Farmers praised Coles for the move.
‘‘Coles has made the right decision to increase the price of its discount milk brand and they should be commended for their initiative in working to end this price-freezing practice,’’ ADF chief executive David Inall said.
‘‘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.’’
However, dairy farmers Craig Gallpen, from Blighty and Strathmerton’s Andrew Wilson both agreed that the extra 10¢/litre was not enough.
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