Dairy farmers hit by the recent floods have welcomed Woolworths' move to lift the price of milk, urging others to follow suit.
For years dairy farmers have been squeezed by the low price of supermarket brand milk, which often sits at or below the price of production. NSW Farmers Dairy Committee Chair Colin Thompson, who was one of the farmers hard-hit by recent flooding near Forbes, said Woolworths' decision to increase the price of its store brand milk to $1.35 for its one-litre bottles last week was a step in the right direction.
"Dollar-a-litre milk was smashing us, frankly, and even at $1.20 it was tight, but NSW Farmers has been a loud voice in calling for a little fairness in milk pricing," Mr Thompson said.
"This will give us a little more wiggle room as we clean up from these floods, and it's something that I know will be welcomed right across the state.
"I'm really hopeful now we'll see a similar move from Coles and Aldi."
Woolworths increased the price of its store brand milk to $1.35 for its one-litre bottles last week, with its two and three-litre bottles selling for $1.30 a litre. Mr Thompson said he hoped to see the other major supermarkets follow suit, as well as the big brands.
"NSW Farmers has been a strong advocate for the dairy sector in this space, because if we don't pay farmers a fair price we could lose our dairy sector altogether," Mr Thompson said.
"This creates the opportunity for a branded product increase which would allow for an increase to flow back to the farmers.
"Our dairy farmers produce world-class milk enjoyed by Australians of all ages, and that's who we're working to protect."
