Supermarket giants Coles and Aldi are raising the prices of their two and three-litre bottles of milk, vowing to pass the extra money onto Australian dairy farmers.
From today, the two supermarkets will add 10 cents per litre to each bottle, making their two-litre bottles $2.20 and three-litre bottles $3.30. The companies each announced the step in respective statements on Tuesday evening.
They have both stressed the price spike is a short-term solution to an issue that demands structural reform, led by the Federal Government. Coles Group chief executive officer Steven Cain said his company was endeavouring to help make the dairy industry more sustainable, alongside government and industry stakeholders.
The move brings an end to the eight-year milk price war between the major supermarkets and is expected to help farmers struggling with the drought.
Woolworths increased the price of milk on February 19 but at the time Coles refused to follow suit.
Minutes after Coles made its decision Aldi also announced it would raise the price of milk.
Mr Cain said farmers could not wait for such long-term changes to be made.
“We are moving to provide relief right now,” he said.
Aldi managing director of buying Oliver Bongardt said the decision recognised the “significant issues” facing the diary industry.
“This solution is a short-term measure and will allow our processors to immediately pass additional funds to their dairy farmers outside of normal seasonal adjustments,” he said.