Australian supermarkets charge the lowest prices per litre for generic milk among developed nations, an analysis by The Weekly Times revealed last week.
Cost-cutting supermarkets in the United States and the United Kingdom have been forced in recent weeks to raise the cost of generic milk, with the average generic price per litre climbing to $1.31 in the former and $1.38 in the latter.
Opposition agriculture spokesman Joel Fitzgibbon said the current $1.20 per litre for generic milk sold in Aldi, Coles and Woolworths highlighted how Australia’s milk market needed systemic reform.
He said Prime Minister Scott Morrison must step up to ensure dairy farmers were not driven out of the industry during the coronavirus downturn.
“We have the lowest retail price in the world not because our milk is inferior, not because our farmers are lazy or incompetent, and not because consumers aren’t prepared to pay more,” the Labor frontbencher said.
“It’s because the (Morrison) Government is not prepared to act on a clear case of market failure. The Prime Minister surely can’t continue to ignore the plight of our dairy farmers.”
The office of Federal Agriculture Minister David Littleproud was contacted on multiple occasions by The Weekly Times but did not respond in time for deadline.
In his previous stint in the agriculture portfolio, Mr Littleproud criticised Aldi in particular for its drought response, claiming the retailer had “done bugger all” to assist dairy farmers.
NSW Agriculture Minister Adam Marshall said the 2018-19 drought followed by the 2019-20 bushfires had placed extraordinary financial pressure on dairy farmers in his state.
“I want to see our dairy farmers receive a fair price for their product from processors and retailers,” Mr Marshall said. “A fair price has to properly reflect the rising costs for commercial dairy farmers to produce fresh milk.”
Victorian Agriculture Minister Jaclyn Symes said the rise in farmgate milk prices in recent months better reflected the cost of production.
“I’m pleased that the mandatory Dairy Industry Code of Conduct has come into effect – having a clear, specified minimum price for the duration of contracts between farmers and processors is an important step towards improving transparency and price certainty for farmers,” Ms Symes said.
The presidents of dairy advocacy groups in all Australian states have called for the major supermarkets to raise the price of generic milk to at least $1.50 a litre.
In response to their calls, Aldi, Coles and Woolworths all outlined their contribution to dairy farmer support packages but did not guarantee a price rise.
