Latest with these Supermarket Giants - Woolworths and Coles raise the milk prices

Woolies lifts milk price to help drought-stricken farmers

Writing on the Facebook page for Tommerup's Dairy Farm, in Kerry, QLD, the dairy farmer pleaded with customers to sign a petition aimed at pressuring supermarkets to increase prices by 10 centre per litre, which would go directly into the pockets of struggling farmers.

Following in Woolworths' footsteps, Coles later confirmed it too would add a 10 cent per litre levy, with prices increasing from Thursday until the end of the year.

But Coles has announced it will follow suit, introducing the exact same levy - 30 extra cents on its 3L milk - from today.

The supermarket also encouraged customers to buy other dairy brands, a number of which have already implemented their own measures to help drought-affected farmers.

Coles said it and its customers had already committed nearly $12 million to drought relief.

The announcement led to dairy farmers across the nation questioning Coles' radio silence on the issue.

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A Coles spokesman told Daily Mail Australia it has added a 10 cent a litre levy as they increased the price of their 3L Own Brand Milk to help support the farmers. Further, the increase in the price of milk, for drought relief, is considered as a very important step in breaking the cycle of consumers that see dairy as a discount product.

On Thursday he applauded Woolworths' move.

"There's no doubt many dairy farmers are doing it tough in the face of the drought and we're keen to support them through this hard time", Paul Harker, Woolworths Director of Fresh Food, said.

Until the new drought relief range hits the shelves, the supermarket has increased its existing three litre milk from $3 to $3.30 in Queensland, New South Wales, ACT and Victoria to ensure drought relief funds start flowing through to dairy farmers as quickly as possible.

"We need to give farmers more bargaining power and help them get a fair return out of the market so they aren't going cap-in-hand to processors and retailers". A committee for drought relief is formed, which will ensure that the extra 10¢ a litre paid to suppliers is distributed to dairy farmers.

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