Today Woolworths scrapped its $1 per litre milk, an arrangement that has been disastrous for dairy farmers. The pressure is now on for all supermarkets to follow suit.
The supermarket giant will indefinitely extend the ‘drought levy’ model applied to $1 milk last year and see the supermarket sell two and three litre varieties of own-branded milk for $2.20 and $3.30 respectively.
The extra 10 cents per litre will go back to farmers via processors.
The announcement follows talks between Woolworths and Australian Dairy Farmers (ADF), the peak body representing the industry.
ADF Chief Executive Officer David Inall said today represented a major victory for farmers.
“The dairy industry has been suffered from the debilitating effects of $1 milk for eight years, since Australia Day 2011.
“Woolworths should be applauded for having the courage to phase out its $1 milk line, and it is now time for other retailers to immediately do the same. No ifs, no buts,” Mr Inall said.
Agriculture Minister, David Littleproud also called on other retailers to follow Woolworths’ lead.
“All supermarkets should pay a fair price for all dairy – this includes cheese and yoghurt, not just fresh milk, which is a small fraction of the market.
Selling milk at $1 drives down prices to farmers. Selling milk cheaper than water devalues the product and the work farmers put into it.
The National Farmers Federation said it was time for a larger national discussion about the value we place on our food.
“Australia’s dairy sector is made up of some of the nation’s most efficient and hardest working small businesses.
Consumers must be willing to pay just a little extra to ensure a sustainable Australian dairy sector.
“We need to remember, it’s not just the price of milk that dictates farmers’ fortunes but that of all dairy products such as yogurt, cream and cheese. Milk is but one small component,” NFF CEO Tony Mahar said.
