German supermarket ALDI and Australian supermarket giant Woolworths have both lifted the retail milk price in a move supported by a dairy advocacy group.
Aldi has increased its retail milk prices across Australia by 10¢/litre.
Aldi will now sell its home-brand one-litre milk for $1.29, up from $1.19, while its two-litre milk will now cost $2.39 and three litres will set you back $3.59.
From July 26, the Woolworths-branded fresh milk range will sell for: one litre $1.29, two litres $2.39 and three litres $3.59.
‘‘We have recently increased the retail price of our entire fresh milk range,’’ an ALDI Australia spokesperson said.
‘‘These price rises are the direct result of the recent increase in the farm gate milk prices agreed between our milk suppliers and the dairy farmers.
‘‘We will continue to maintain the collection and distribution of 10¢/litre implemented earlier this year and ensure that the proceeds are passed onto dairy farmers in full.
‘‘We do not take price increases lightly, however these movements are necessary for building a long-term sustainable Australian dairy industry.’’
Dairy Connect chief executive officer Shaughn Morgan welcomed the announcement.
‘‘The ALDI statement confirms our long-held belief that the farm gate price paid to dairy farmers has been too low and reflected commercial ‘market failure’,’’ Mr Morgan said.
‘‘It’s important to ensure that as much as possible of the ALDI price increase flows through to the farmers.’’
Dairy Connect chair Graham Forbes said relationships along the supply chain needed to be restructured to ensure viability into the future.
‘‘Retailers, processors and farmers all need to be successful because there is a risk that Australian consumers will soon be drinking imported milk,’’ Mr Forbes said.
‘‘We need to ensure a ‘win-win’ for all because, with the large number of dairy farming enterprises closing on a weekly basis, Australia is on the verge of importing foreign milk.’’
Woolworths said since February it had seen farm gate prices increase significantly.
‘‘As a result of these farm gate price movements, we have been paying our suppliers even more for milk and other dairy products across the category over recent months,’’’ a Woolworths spokesperson said.
‘‘Due to these ongoing whole-of-market cost pressures, we have reviewed and adjusted the price of Woolworths milk.’’