The Australian Dairy Farmers (ADF) has challenged Coles to prove that the recent milk price cuts will not affect farm gate milk prices for Australian dairy farmers.
The price of Coles Brand fresh has been cut by as much as 33% and Coles maintain that they will fully fund the price cut and have no intention to pass on the costs to consumers or dairy farmers.
Coles Merchandise Director John Durkan said, “In the same way that Coles is absorbing the higher costs of hormone growth promotant free beef, Coles is not reducing the price it pays to its milk processors either so this move will not impact them or the dairy farmers who supply them.”
ADF Vice President Chris Griffin has rejected this assurance. He claims that it is inevitable that costs will be passed on to either consumers through higher prices on other products in Coles’ stores or to dairy farmers through lower prices for their milk.
“Coles is selling milk at an unsustainable price and it is not only dairy farmers who believe this is the case,” he said.
Meanwhile the decision to include Coles Brand lite milk in the price cuts has been welcomed by Dr Lyn Roberts of the Heart Foundation.
“The message from the Heart Foundation is clear - reduced, low or no fat milk is a healthy food and now thanks to Coles, it won’t cost you any more to buy healthier milk,” she said.