Coles will not follow Woolworths in dumping $1-per-litre milk

Coles will not increase its milk prices to help struggling Australian dairy farmers, saying it will instead look for alternative ways to help the industry while still offering customers $1-per-litre milk.

Woolworths announced on Monday that it will phase out its own $1-per-litre milk, with more than 450 Australian dairy farmers who supply its home-brand milk now set to pocket an extra 10 cents per litre.

But in a statement released on Monday night, Coles said it would not be following suit and would instead explore “additional options” that “does not disadvantage our customers and supports our dairy farmers”.

“Coles is passionate about supporting our farmers and producers and in the past six months has committed $16 million to support this important industry,” a Coles spokesperson told Starts at 60.

“This includes contributing around $4 million to almost 640 dairy farmers through the Coles Dairy Drought Relief Fund and more than $7 million in partnership with the Country Women’s Association, resulting in over 2,300 additional grants for drought-affected farmers.”

In the meantime, Coles said it will continue to look at ways to support Australian farmers, including collecting customer donations and matching them dollar for dollar from next week.

“Coles also knows that many customers in Australia face cost of living pressures and doesn’t want them to be disadvantaged through price increases. We also note that the ACCC has previously examined the Australian dairy industry and concluded that house brand milk pricing does not negatively impact farmgate milk prices.

“Coles is seeking a long-term solution that does not disadvantage our customers and supports our dairy farmers.”

Both Woolworths and Coles started selling $1-per-litre milk in 2011 as part of their price battle for market share.

Read more: Woolworths ditches $1-per-litre milk to support drought-stricken farmers

Woolworths will begin its cheap milk phase out today would be selling milk for an extra 10 cents per litre. The supermarket giant has said the move will benefit struggling farmers who will receive “every cent” of the price increase.

The move will also see the supermarket sell two- and three-litre varieties of Woolworths branded fresh milk for $2.20 and $3.30 respectively.

“We believe the long term sustainability of our dairy industry – and the regional communities they help support – is incredibly important for Australia,” Woolworths Group CEO Brad Banducci said.

“This is affecting milk production and farm viability, which is devastating for farmers and the regional communities in which they live. It’s clear something needs to change and we want to play a constructive role in making this happen.”

Woolworths was the first Australian supermarket to launch Drought Relief Milk back in September 2018. Following in Woolworths’ footsteps, Coles responded to the drought affecting some diary suppliers with a temporary 10 per cent levy on three-litre bottles of milk.

What are your thoughts on this? Will you still buy cheap milk from Coles?