Coles will not follow Woolworths in
increasing the price of milk to support Australian dairy farmers, but have insisted they are supporting the industry in other ways.
On Monday , Woolworths announced they would be dumping their $1-a-litre product, and from today would be selling milk for an extra ten cents per litre. The extra money will go to 450 dairy farmers which supply the chain.
In a statement to media, Coles said they are “exploring additional options” but said a price increase could add to customers’ cost of living expenses.
“Coles is passionate about supporting our farmers and producers and in the past six months has committed $16 million to support this important industry.
“This includes contributing around $4 million to almost 640 dairy farmers through the Coles Dairy Drought Relief Fund and more than $7 million in partnership with the Country Women’s Association, resulting in over 2,300 additional grants for drought-affected farmers.
“Coles has been exploring additional options in relation to how to best support Australia’s hard working farmers, including how we ensure that drought assistance initiatives are as efficient and effective as possible.
At the moment, there are a variety of different models being adopted by retailers and producers.
“In the meantime, Coles will continue to look at ways to support Australian farmers, including by collecting customer donations at our supermarket registers nationally from Monday 25 February, until further notice. Coles will match these donations dollar for dollar.
“Coles also knows that many customers in Australia face cost of living pressures and doesn’t want them to be disadvantaged through price increases.
“Coles is seeking a long-term solution that does not disadvantage our customers and supports our dairy farmers.”
Woolworths’ announcement on Monday follows a “Drought Relief Milk” range that it started selling in September 2018 which had raised $5.8 million to date.
“We believe the long term sustainability of our dairy industry – and the regional communities they help support – is incredibly important for Australia,” said Woolworths chief executive Brad Banducci.
A number of dairy farmers have welcomed Woolworth’s decision, though remain sceptical it will deliver significant industry change or put money back in farmers’ pockets.
“I think it’s important to recognise that $1 isn’t the main problem,” South Australian farmer Casey Treloar told media.
“This announcement is an exciting step in the right direction but we’ve had $1 milk for the almost 10 years – why has it taken this long?”
