Milk prices: Coles hikes the price of their home brand milk by up to 50c a bottle

Coles has their price house brand milk by as much as 50 cents per bottle, after a plea from dairy farmers struggling with higher production costs.

While this is good news for the dairy industry, it is less so for Australian consumers who are already struggling with higher grocery costs.

A 1L Coles milk now costs Australian shoppers $1.85up $1.65 and up 20c.

Coles’ 2 liter milk now costs shoppers $3.55, up from $3.20 and up 35 cents.

Meanwhile, a 3L of Coles milk now costs $5.15, up from $4.65 and an increase of 50 cents.

Joe Bradley, director of eastAUSmilk, told the story nine.com.au Coles’ price increase does not go far enough.

“I’m happy with it, but it’s still not far enough. We say the minimum price for milk should be at least two dollars per liter.”

He calls on the major supermarkets to go one step further and reduce their profit margins.

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“If you reduce margins, everyone can get something. Now we only get 5 cents, but costs have gone up.

“And I’ve talked to some farmers and our costs have gone up at least 15 cents per liter, sometimes more.”

The war in the Middle East has doubled the price of fuel used on farms and to transport milk to supermarkets in just a few weeks.

In addition to the pressure on product costs for dairy farmers, the costs of fertilizer have also risen significantly.

“Fuel and fertilizer are two key input costs for dairy farmers and cost increases of this magnitude cannot be absorbed by dairy farmers,” eastAUSmilk president Tim Bale previously told nine.com.au.

“Farmers will cut production or leave the sector in the coming months if action is not taken immediately.”

Australian Dairy Farmers Australia will meet later today to discuss the crisis in Australia’s dairy industry.

Although Coles has responded to the request with an increase of 20 cents per litre, Woolworths has yet to increase the price of their milk.

A Coles spokesperson told nine.com.au: “We know rising cost pressures are impacting many Australians, from farmers and suppliers dealing with higher input costs such as fuel, fertilizer and packaging, to families dealing with increases in petrol, energy, insurance, mortgage and rent.

“In response to rising costs across the dairy chain, and to help our dairy farmers get through this period, we are increasing the shelf price of Coles Brand fresh and UHT milk.”

“Part of the increase goes to farmers who buy directly from Coles, via an additional payment on top of the price they deliver.

“The shelf price increase will also cover packaging and other fuel-related operating costs.

“In this case, we pass on the additional costs that we have incurred and will continue to incur in our dairy chain.

“As further support for farmers purchasing directly, we are also providing an additional $1 million through a one-off support payment.

“We recognize the impact of cost increases on customers and are working hard to find the right balance between supporting our suppliers and continuing to provide value to Australians across their shopping basket.”

THE NEW COLES MILK PRICES:

• 1L bottle: $1.85 (above 20 cents)

• 2L bottle: $3.55 (above 35c)

• 3L bottle: $5.15 (50c higher)

Grocery costs in Australia have risen by more than 20 percent in the past four years.

Customers can save on milk costs by waiting for the discount at the end of the day.

A visit to a local Coles in Sydney after 6pm revealed that the 2 liter Coles own brand milk had been marked down by $1.50, from $3.55 to $2.05, due to its short shelf life.

And their 3-liter milk was reduced by 65 cents from $5.15 to $4.50.

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