Aldi Australia confirmed it is raising the price of its homebrand fresh milk range by another 10 cents a litre.
The new pricing puts Aldi's one-litre bottles at $1.29, 2L at $2.39 and 3L at $3.59.
"We have recently increased the retail price of our entire fresh milk range," an Aldi Australia spokesperson said.
"These price rises are the direct result of the recent increase in the farm gate milk prices agreed between our milk suppliers and the dairy farmers."
Asked whether the supermarket would return the proceeds of the increase to farmers, Aldi instead referred to the late-March 10-cent boost to the price its suppliers paid to farmers.
"We will continue to maintain the collection and distribution of 10 cents per litre implemented earlier this year and ensure that the proceeds are passed onto dairy farmers in full," the spokesperson said.
"We do not take price increases lightly, however these movements are necessary for building a long-term sustainable Australian dairy industry."
NSW dairy lobby group Dairy Connect chief executive Shaughn Morgan welcomed Aldi's decision.
"It's great to see a major supermarket recognize its price has been too low but it's important that as much as possible of that increase flows through to the farm," Mr Morgan said.
"Given the decision of Aldi to increase the price of milk, we call upon Coles and Woolworths to follow their lead.
"The retailer, processors and farmer all need to be successful because there is a risk that, unless that happens, Australian consumers will be drinking imported milk."
Australian Dairy Farmers spokesperson Ashley Mackinnon said it was "comforting to know that Aldi Australia is providing certainty to farmers by committing to continue passing a 10-cent increase on its fresh milk products back to the farm gate".
"Supermarket discounting has had an incredibly negative financial impact on the Australian dairy industry over the last eight years but now retailers are recognising that this pricing strategy must be fixed for the sake of the supply chain."
Rival supermarkets Coles and Woolworths have been contacted for comment.
This story first appeared on Stock & Land
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