Supermarkets giants IGA and Costco must ditch their discount milk varieties to ensure farmers get a fairer price for a quality product, according to Australia's peak dairy farmer group.
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Australian Dairy Farmers (ADF) is demanding immediate action from the last major two retailers in Australia selling discount milk, after Woolworths, Coles and ALDI all agreed to raise the price of their $1-a-litre brands by 10 cents, with the increase going back to farmers.
"Both IGA and Costco need to take this extremely seriously and stop dragging the chain," ADF chief executive David Inall said.
"Dairy farmers are sick and tired of seeing their quality product frozen in time at the back of the store selling for $1-a-litre or cheaper, and IGA and Costco have the power to make that right."
The dairy industry has been fighting against discounted dairy for more than eight years, since Australia Day 2011 when the pricing strategy was introduced.
Woolworths in February became the first Australian supermarket to announce it was moving away from dollar milk, followed yesterday by Coles and ALDI.
"Woolworths, Coles and ALDI have all made the right decision to increase the price of their discount milk brands," Mr Inall said.
"It doesn't make up for eight years of a flatlining retail price, but it is an acknowledgment of the strain placed on farmers by this destructive pricing strategy.
"IGA and Costco must ditch dollar milk or else we will have no choice but to ramp up pressure on both retailers until there is real change to benefit farmers."
