Retail giant Woolworths is set to hike the price of its branded milk amid a further escalation in the cost of living across the country as households are forced to pay exorbitant prices for groceries. petrol and electricity.
The rise follows the same decision Coles made on the price of its own-brand milk on Thursday.
Coles cited higher packaging and transport costs as the reason for the higher milk prices.
Woolworth’s 1 liter branded milk will rise 25 cents to $1.60, 2 liter branded milk will rise 50 cents to $3.10 and 3 liter branded milk will rise 60 cents to $4.50.
Retail giant Woolworths (pictured) is set to hike prices of its branded milk after Coles made the same decision on Thursday
A Woolworths spokesman told Daily Mail Australia on Friday: “The farmgate prices paid to dairy farmers have increased significantly this season and as a result we are paying our own branded suppliers more for milk.
“Across the milk fridge, brands have already increased their retail prices to reflect higher wholesale costs across the industry.
“We will be adjusting the price of our own Woolworths branded milk in the coming days to reflect these higher costs as well.”
Woolworth’s 1 liter branded milk will rise 25 cents to $1.60, 2 liter branded milk will rise 50 cents to $3.10 and 3 liter branded milk will rise 60 cents to $4.50 (Fig ).
Dairy Australia’s May 2022 Seasonal Outlook noted that announced farmgate prices to date are well above historical highs.
PRICES OF WOOLWORTH’S MILK FROM 15 JULY:
1L Woolworths brand milk – $1.60
(increase from $1.35)
2L Woolworths brand milk – $3.10
(increase from $2.60)
3L Woolworths brand milk – $4.50
(increase from $3.90)
Meanwhile, Rabobank’s Australian Dairy 2022/23 Seasonal Outlook noted that Australian dairy farmers are poised for another profitable season – with record milk prices and favorable seasonal conditions.
“A soft landing in global markets and a strong currency will continue to support record milk prices in 2022/23,” the report reads.
Woolworths branded milk is supplied by dairy processors and these processors (not retailers) set the farmgate price paid to dairy farmers for their milk, with increases in the farmgate price being passed on to Woolworths by the processors.
Woolworths offers more than 5,000 grocery specials each week and has announced 200 products under its Price Freeze program, which locks the retail price of these items (mostly private label) through at least the end of the year to offer value and security to shoppers.
They’ve also lowered the price of 300 groceries over the winter as part of their Price Drop program.
Coles announced yesterday that the price of its Coles Brand Fresh White Milk 3L will increase by 60 cents, while 1 liter bottles will increase by 25 cents and 2 liter bottles will cost an additional 50 cents.
Leah Weckert, Coles’ chief commercial officer, said the decision to increase the price of its own-brand milks was not taken lightly.
Most of the price hike goes into the pockets of farmers, who along with the supermarket giant are paying more for dairy.
Aussies are paying more for milk at Coles, with private label varieties rising by up to 60 cents (pictured woman shopping in Sydney).
“We never take price increases lightly, but the increased supply chain costs we’re seeing, including higher payments to dairy farmers and processors, have necessitated these increases for Coles Brand dairy,” she said.
‘The feedback we have received from farmers and processors following the recent farm gate and wholesale price increases has been very positive and we hope customers will help us continue to support them by selling their premium Australian milk to buy.’
Coles said it is now paying dairy farmers more for their product, with the price increase being passed on to other businesses, namely restaurants and cafes.
Coles says that increased packaging and transport costs have forced it to increase the price of its milk (pictured Coles own-brand bottles).
Michael Hampson, CEO of Norco dairy cooperative, which supplies Coles-branded milk in north NSW and south Queensland, said rising production costs have hit farmers hard.
He said as farmers recover from the devastating floods, the price hike would make a big difference.
“Through our long-term partnership with Coles, we’ve been able to support our 300 farmer members with a record increase in the price of farm-gate milk for the combined 200 million liters our members supply to our 100 percent farmer-owned cooperative,” he said.
United Dairy Farmers of Victoria vice-president Mark Billing said farmers were facing “significant supply chain issues” which meant the price of getting milk to supermarket shelves had risen.
“The cost of fertilizers has skyrocketed, we have significant costs for energy, grain that we feed our cows – all of these have increased significantly, especially after the war in Ukraine,” he said 3AW radio on Thursday.
United Dairy Farmers of Victoria Vice President Mark Billing said farmers were facing “significant supply chain issues” (pictured a Coles supermarket in Melbourne).
Mr Billing said farmers had borne much of the cost hike and there had been no “significant movement or any movement at the retail level”.
The raise comes after Bunnings announced on Wednesday that its iconic Bratwurst would see a $1 price increase.
A hook and bread will cost players $3.50 instead of $2.50 after community groups saw a drop in money going to charity.
The rising cost of essential ingredients like meat, bread, onions, sauce and oil meant volunteers struggled to make a profit from the sizzle.
Customers will pay an additional $1 starting Saturday, July 23, with the price increase affecting more than 300 Bunnings stores across the country.
From August 1, Coles, Woolworths, Aldi and IGA are forced to raise prices on hundreds of items as suppliers of processed and packaged goods face increased costs
The latest inflation figures show a 4.3 percent rise in food prices for this year through March.
From August 1, Coles, Woolworths, Aldi and IGA are forced to raise prices on hundreds of items as suppliers of processed and packaged goods face increased costs.
In March, inflation rose to 5.1 percent from the previous 12 months due to higher housing costs and fuel prices.
A further increase is expected on July 27, when the next consumer price index is released.
Coles reported cross-price inflation of 3.3 percent last quarter and Woolworths a 2.7 percent increase.
The broader cost-of-living crisis is likely to worsen in the coming months as petrol prices rise in September when the temporary fuel tax expires.