Coles and Aldi are increasing the price of their milk.
Coles and Aldi are increasing the price of their milk. Communications

Coles, Aldi 'backflip' on $1 milk decision

UPDATE, 10.40am: FEDERAL Member for Page Kevin Hogan has welcomed the announcement that Coles and Aldi will stop selling $1 a litre milk.

"I applaud this decision and the work done by Agriculture Minister David Littleproud in breaking the back of the $1 a litre milk model," he said.

"It's time farmers received a fair reward for their effort.

"More work needs to be done to help our dairy farmers but this is a very good first step.

"I will continue to lobby my colleagues to support my call for a Royal Commission into the alleged market abuse by the large Supermarkets.

"There is still a power imbalance in the sector that needs to be addressed."


Original story: THE NSW Farmers' Association says they are "delighted" with news that Coles and Aldi had decided to ditch $1 milk.

Coles and Aldi yesterday announced they will increase the price of their respective private label milks by 10 cents.

The additional money will flow back directly to the dairy farmers that supply the products.

NSW Farmers Dairy committee chairwoman Erika Chesworth said it was a "huge win" for dairy farmers.

"The NSW Farmers dairy committee and all dairy farmers have been fighting for this result since $1 litre milk was introduced in 2011," she said.

"This is a welcome backflip from Coles and Aldi on their decision to stick with $1 milk last month.

"Dairy farmers have said all along that they just want a fair price for the fresh and nutritious product they produce.

"This will help in that endeavour and must spell the end of irrational pricing of fresh milk that had taken so much value from our industry. "

NSW Farmers acknowledged the support shown by the community in achieving this change.

Primary Industries Minister, Niall Blair, also has welcomed the move by Coles and Aldi.

"When Woolworths was the first to increase prices from a $1 a litre, I called on Coles and Aldi to follow suit and was disappointed with their response and resistance," he said.

"In recent weeks, I have met directly with all the major supermarkets and took the unprecedented step of writing to Coles directors and top 20 shareholders to seek a rethink of their approach.

"I have met with dairy farmers and processers right across the State and have listened to their heartfelt stories of their struggles and fears for their future in NSW.

"We know that this small price increase isn't a silver bullet but it's a good start and I congratulate Coles and Aldi on this important first step.

"The issues facing the dairy industry aren't over though."

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