Coles to increase price of home-brand milk as dairy farmers face fuel crisis amid Middle East war
The supermarket giant is hiking the price of a household staple as its suppliers face ongoing fuel-related supply chain and operational cost pressures.
Coles is hiking the price of its home-brand milk as dairy farmers face ongoing fuel-related supply chain and operational cost pressures.
From Wednesday, shoppers will pay $1.85 for Coles’ 1 litre of fresh white milk, up from $1.65, while its 2L milk will jump from $3.20 to $3.55. The price of its 3L milk will increase from $4.65 to $5.15.
A Coles spokesman said the price hikes would help cover cost increases across the dairy supply chain due to the war, including in transport, logistics and packaging.
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By continuing you agree to our Terms and Privacy Policy.“A proportion of the increase will go to Coles’ direct-sourcing farmers through an additional payment, on top of their farmgate price,” he said.
“The shelf price increase will also cover packaging and other fuel-related business costs. In this case, we are passing on the additional costs which have been, and will continue to be, incurred in our dairy supply chain.”
The move comes after Coles temporarily increased the price paid to its dairy farmers directly supplying to Coles by 5¢ a litre, on top of the farmgate price.
The supermarket giant also announced a $1 million relief fund to help farmers with these soaring costs. Those funds are being handed out to over 100 farmers this week, based on their individual milk distribution.
More to come.
