Coles And Aldi Are Raising The Cost Of Milk And Passing The Money Onto Farmers

For years, Aussie farmers have complained the big supermarkets are dropping prices to remain competitive amongst each other, leaving them heavily out of pocket.

But Aldi and Coles are taking a step to helping out these men and women by raising their prices - albeit slightly - while promising to pass the savings onto farmers.

Both supermarkets will be upping their two and three-litre bottles by 10 cents each.

via GIPHY

Coles Group Chief Executive Officer Steven Cain said in a statement: "Coles sources 100 per cent of our Coles Brand fresh milk from Australian farmers, many of whom are struggling as the impact of drought compounds ongoing challenges in the dairy industry.

"Coles supports proposals to make Australia's dairy industry more sustainable, and we are continuing to explore long-term solutions with government and industry stakeholders.

"However we know that many dairy farmers cannot wait for structural reform to be delivered so we are moving to provide relief right now."

Coles has previously pledged a whopping $16 million towards farmers to help them battle the drought.

Oliver Bongardt, Managing Director of Buying at ALDI Australia added: "Our decision to increase fresh milk prices has been reached in recognition of the significant issues currently impacting the dairy industry and the fact that broader government-led policy reform is unlikely to occur in the short-term."

Farmers haven't been quiet about this issue ever since pricing was deregulated in 2000/01 according to Dairy Australia.

Australia is one of a few countries that don't hold milk-processing companies to legislative control. The cents/litre ratio has been dropping since 2014/15, meaning farmers are getting less bang for their buck year on year.

Hopefully this move from Aldi and Coles will help provide some relief.

The decision brings them in line with Woolworths, who announced a similar move last month.

Woolies said it would stop selling milk at $1 a litre and has bumped up the price to $1.10.

Australian Dairy Farmers Association CEO David Inall said: "It is reassuring that Woolworths has committed to deliver the full 10 cent increase back to those farmers who supplied the milk."

Featured Image Credit: Aldi/PA

Topics: Food, News, Australian News, Community, Australia

Stewart Perrie

Stewart Perrie is a Trending Journalist at LADbible. His first job was as a newsreader and journalist at the award winning Sydney radio station, Macquarie Radio. He was solely responsible for the content broadcast on multiple stations across Australia when the MH17, Germanwings and AirAsia disasters unfolded. Stewart has covered the conflict in Syria for LADbible, interviewing a doctor on the front line, and has contributed to the hugely successful UOKM8 campaign.

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