Supermarket giant Woolworths has increased its own label milk prices, with farmers hoping to have the costs passed back to them.
One litre of Woolworths-branded full cream milk now costs $1.35, with two litres $2.60 and three litres $3.90. It’s believed to be the first price rise in two years.
WA Dairy Council president Ian Noakes said the price rise had been “a very long time coming”.
Mr Noakes said he hoped some of the increase would be passed on to processors, who would then pass it on to farmers.
“This potentially could then push up the price of branded milk which is good for everyone in the supply chain,” he said.
The council said milk had been left at a low and unreasonable price when prices for petrol had skyrocketed, with motorists forced to accept it.
The cost of milk production had increased, Mr Noakes said, with labour, fertiliser and adapting to climate change pushing farm costs higher. More price rises for other foods are likely.
“Farmers need increased farm gate prices to cover their costs,” he said, noting that though Woolworths’ price increase was welcome, the national policy of the Dairy Farmers industry was a voluntary minimum price of $1.50 per litre.
Coles’ own label milk is selling at $1.29 for one litre and $2.39 for two litres.