Member for the Agricultural Region Colin de Grussa has welcomed the decision by Coles and Aldi to axe $1 per litre milk, saying it was “about time”.
Both supermarkets will raise the price of milk to $1.10 a litre, matching a commitment made by Woolworths in February.
Mr de Grussa said this move by Coles and Aldi continued a small but significant change to the dairy industry, which was devastated by the introduction of $1 milk in 2011.
“I’m pleased to see Coles and Aldi have finally been dragged into following the lead of Woolworths, who axed $1 a litre milk in February,” Mr de Grussa said.
“This is such a small change for Coles and Aldi to make, but it has such a huge impact on those in the industry.”
Coles and Aldi have promised the price increases will be passed on to farmers, and it is anticipated that this will return approximately $7 million per year to dairy farmers in Western Australia’s South West alone.
Mr de Grussa said there were still other changes needed within the dairy industry, which has faced significant challenges in the last eight years.
“Dairy farmers have experienced significant drought across the country, and coupled with $1 per litre milk and other contract issues, they’ve been struggling for a long time,” Mr de Grussa said.
“I hope that this is the start of significant reforms that will further support this important industry.”
Mr de Grussa repeated his call for supermarkets to also support egg producers, who are currently facing pressure from supermarkets to reduce their prices to supply eggs.
“High feed prices due to the Eastern States drought has pushed many egg producers to the brink, and I urge supermarkets to come to their senses and accept that cost increases beyond the control of producers cannot simply be absorbed.”
