Milk prices: Milk just ‘first cab off the rank’ for supermarket price hikes, expert warns

Recent increases in private label milk prices are just “the first step out of the league” when it comes to expectations price increase for groceriesS, Today money expert Joel Gibson has warned.

Coles, Woolworths and Aldi have increased the price of their private label milk varies across the board this month by 20-50c.

This followed A plea from Australian farmers It is difficult to cover the increased production costs due to rising fuel prices as a result of the conflict in Iran.

“We were told that dairy would be the first product category to increase because of the war in Iran,” Gibson explained. Today.

“And that is true. So now we also have to keep a close eye on the other things in the supermarket.”

Gibson said chilled groceries will be the first to go up, followed by fruit, vegetables and meat, with milk “the first taxi of the rankings”.

“It is clear that everything in the supermarket is affected by fuel prices. We have heard about the fuel surcharges that suppliers are charging supermarkets.

READ MORE: Popular cooking ingredient is disappearing from supermarket shelves

READ MORE: Bunnings’ little-known cafe is about to sell the best meat pies in the country

READ MORE: Hidden details on the grocery label that indicate when prices drop

“There is resistance from the supermarkets, but it is now starting to flow through.”

Gibson warned that prices are unlikely to fall once the market calms down.

“It never goes down, it just stays the same or goes up more steeply. That’s our past experience.

“In the short term, we will unfortunately see large price increases for supermarkets.”

Gibson also warned that the cost of private label milk can fluctuate depending on where customers buy it.

Coles, Woolworth and Aldi have increased the number of Metro supermarket locations in busier areas where food prices are higher across the board.

Gibson conducted a “fascinating little experiment” and discovered that a 2 liter of Woolworths own-brand milk costs $3.55 at one of the supermarket’s general locations, but in a Woolies Metro store it costs customers up to $4.

This is because “the prices in the metros are slightly different”.

Private label milk ordered via delivery apps will cost customers even more.

A 2 liter Coles own brand milk ordered via Uber Eats costs $3.60 and a 3 liter milk costs $5.20. That’s before any delivery charges are added to the purchase.

When Gibson ordered a 2-liter milk through a delivery app, he was charged $18.37 due to the higher prices and delivery, service and ordering fees.

So don’t order a single bottle of milk via the delivery apps!

“It’s really important to know that where you buy the milk and how you get it, deliver it or pick it up or whatever, it can make a huge difference in the cost of any product in the supermarket,” Gibson said.

The money expert further explained that Coles and Woolies have so-called ‘local’ and ‘Metro’ stores, while Metro store prices are rising.

‘There are 140 [Metro stores] across the country,” he said.

“They are particularly concentrated in the inner suburbs, the more affluent suburbs of Sydney and Melbourne, and prices can be higher in those places.”

Smart supermarket features from around the world

Gibson said it’s “really important to know where you’re shopping” to avoid paying those higher prices, if possible.

He cited a recent test by Sydney Morning Herald And The era who found that buying the ingredients for Beef Stroganoff at a typical Coles, Woolworths or Aldi cost less than at their respective Metro locations.

At a Coles Local store the cost was $50.18 and at a Coles Metro that rose to $59.38-$70.58 for the same set of ingredients.

Gibson said the price difference is also because the Metro locations do not have the same range of products and as many affordable private label items as the larger local grocery store locations.

He said the Metro supermarket locations are in “very convenient locations” where Australian shoppers can stop by on their way home from work, but that will ultimately force them to pay higher prices.

“As always, convenience comes at a cost.”

FOLLOW US HERE ON WHATSAPP: Stay updated with the latest celebrity news, lifestyle and opinions through our WhatsApp channel. No comments, no algorithm and no one can see your private data.