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Household budget squeezed as Coles raises the price of home-brand milk
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One of Australia’s largest supermarkets has announced a huge price hike for its branded milk which is sure to put more pressure on family budgets.
Key points:
The price of Coles home-brand milk will increase by 25 cents per liter for 1L and 2L bottles
It said rising procurement, transportation and packaging costs were behind the increase
He also said that they pay farmers more for their milk
Coles said his own 1-liter fresh milk would jump 25 cents from $1.35 to $1.60 per liter while a 2-liter bottle would increase to $3.10 from $2.60.
It was the most substantial one-time increase since supermarkets introduced the controversial $1 per liter milk in 2011, which slashed retail prices of milk by a third.
Coles, Woolworths and Aldi all raised their supermarket milk prices by 10c per liter in December last year.
The increase was the first increase by a retailer in more than two years after the last three hiked prices by 10 cents in July 2019 after ending dollar milk earlier that year.
Coles said “rising procurement, transportation and packaging costs, including a substantial increase in farm-level prices paid to dairy farmers” had led to price increases.
Milk is sourced directly from dairy farmers and also through dairy cooperative Norco, which supplies Coles Brand milk in north NSW and south Queensland.
The increase comes after record prices paid to farmers by dairy processors for the new financial year, with farm gate values reaching $10 per liter for solid milk.
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