Supermarket raises milk price in support of drought-affected farmers
A supermarket in on NSW’s south coast has bucked the trend of leading chains across the nation and has decided to up the price of milk to help farmers affected by the drought.
While Coles and Woolworths have so far failed to up the price of milk to ease the financial pressure on dairy farmers in NSW and Queensland, an IGA in Milton, near Ulladulla, has risen the price of a litre of milk by 10 cents.
“People are very on board,” the store’s co-owner Anthony Latter told ABC.
He plans to give the additional profit to the four dairy farmers operating in the local area.
“Doing it this way means we know where the money is going and we can keep it in our community,” co-owner Shane Wilson said.
And the move from the store has been a pleasant surprise for those on the receiving end of the fundraiser, with local dairy farmer Robert Miller saying it was “the best gesture you could imagine”.
The supermarket is trialling the scheme for a month and predict they will continue to support the farmers via the price rise until at least Christmas.
Leading supermarkets reluctant to budge
The move could pave the way for leading supermarkets to also rise the price of milk, who have so far been reluctant to do so.
Supermarkets previously pointed towards a recent Australian Competition and Consumer Commission (ACCC) study which revealed there is no correlation in a spike in milk cost in the supermarket and how much a dairy farmer receives.
Last month in the Senate, United Australia Party Senator Brian Burston urged the government to force supermarkets to increase the price of milk from as little as $1 per litre during the drought period.
However, Liberal Senator James McGrath used the ACCC’s inquiry to dismiss the request, as did Labor Senator Anthony Chrisholm and Greens Senator Janet Rice.
The dairy report states that the issue lies with the processor, a middle man between the farmer and supermarket. Coles has stated until processors budge on the price of milk, they are in no position to do so.
Supermarkets say they’re helping farmers in other ways
In line with the ACCC’s findings, supermarkets highlighted to Yahoo7 News last month what they are doing to support farmers during their hardship instead of raising the cost of dairy products.
A Coles spokesperson told Yahoo7 News that they are full supportive of the farmers over the current conditions and have identified certain areas they believe they can help.
“Coles last month announced the Coles Nurture Fund would provide $5 million in grants and interest-free loans for farmers who have a project which will help them to combat drought,” the spokesperson said.
“Coles is also raising money in stores across the country for the CWA’s drought relief efforts, to provide more immediate assistance, and Coles is matching every donation dollar-for-dollar.”
Woolworths donated 100 per cent of profits from fresh food sales to the drought-stricken farmers from a Saturday in August.
The drive follows Woolworths’ initial $1.5 million donation to the Buy a Bale campaign in July.
“We know there are many Australia farmers doing it tough with the drought and that’s why we’ve been working closely with Rural Aid to ensure more support can be provided to those impacted,” a Woolworths spokesperson told Yahoo!7 News.
The spokesperson reiterated the price a dairy farmer receives for milk is out of the supermarket’s control.
An Aldi Australia spokesperson said their efforts to help farmers are ongoing.
“ALDI is supporting drought affected farmers on a community level through food donations and fundraising from our stores,” the spokesperson said.
“We have also committed to a fundraising partnership on a national level and will share further details on this in due course.”
