Coles, Woolies lift milk price to help drought-stricken farmers

Lloyd Doyle
September 22, 2018

Coles have already committed nearly $12 million to drought relief, that includes $5 million from the Coles Nurture Fund to assist drought-affected farmers.

"We're calling for it across the whole of Australia on all milk".

Coles came under fire for not also introducing a levy, before announcing it would join fellow grocery giant Woolworths in offering the drought range.

The temporary 10 cent per litre wholesale price increase will apply to Lion's Dairy Farmers and Pura white milk products sold in NSW, Queensland and Victoria from the beginning of October "for a period of time".

Woolworths Director of Fresh Food Paul Harker said customers were asking the supermarket giant to help farmers during the hard times. "This new range of drought relief milk will provide customers with that choice, safe in the knowledge the extra money will flow through to dairy farmers in drought affected areas".

"Many of our customers have told us they want to help and are willing to pay more for their milk to do so", Mr Harker said. It will work with its brand fresh milk suppliers who source milk from drought-affected regions to set up a drought relief oversight committee that would ensure that the 10 percent per litre paid to suppliers would go to the farmers.

Woolworths was recently at the centre of an ACCC inquiry into the nation's dairy industry in the so-called milk wars.

Following in Woolworths' footsteps, Coles later confirmed it too would add a 10 cent per litre levy, with prices increasing from Thursday until the end of the year. However, as per the dairy farmer the 10 cents a litre would not go very far and that they needed this to be at least to be 20 cents for farmers to try to cover all costs.

Hours after Woolworths' announcement, Coles followed suit.

"We can't make it rain but we can support those regional and local economies in those towns", he said.

Wednesday's meeting included briefings from national drought co-ordinator Major General Stephen Day and special envoy Barnaby Joyce.

'100 per cent of this increase will be donated to farmers affected by drought.

Other reports by Iphone Fresh

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