Happy dairy farmers say Coles and Woolies brought milk price hikes upon themselves
Woolworths and Coles are raising milk prices and there may be more price increases to come due to the expected decline in national supply. Key points: Farmers get record price of milk They say aggressive low prices are pushing farmers out of the industry, which has led to higher demand now Other factors come into play, including lower output from major overseas producers such as New Zealand, the EU and the US But relieved dairy farmers say supermarkets have caused these sudden price hikes on themselves. Earlier this week Coles said it would increase home-brand milk by 25 cents, from $1.35 to $1.60 per litre. Today Woolworths matched those gains, blaming higher supply chain costs, including payments to farmers. “Farm-level prices paid to dairy farmers have increased significantly this season and as a result we are paying more to our own brand suppliers for milk,” a spokesperson said. The spokesperson said “processors – not retailers – set the farm gate price paid to dairy farmers” and s