Bad news for Coles and Woolies customers as price of milk goes up

Coles and Woolworths shoppers will pay more for a staple item in another hit to household budgets.

Coles and Woolworths will charge more for homebrand milk from this week in yet another hit to household budgets.

The increases are being chalked up to rising prices at the farm gate which are being passed on to consumers.

Coles has already adjusted its price tags and Woolies will follow from Friday.

Both will charge $1.60 for a litre of homebranded milk, $3.10 for two litres and $4.50 for a family-sized three litre.

It’s an increase of 25c on the one litre, 50c for two litres and a 60c jump on three-litre bottles.

Coles and Woolworths will increase the price of their own branded milk from this week. Picture: Getty Images

Coles will also increase the cost of its long-life UHT milk from $1.35 to $1.60.

“The farmgate prices paid to dairy farmers have risen significantly this season, and as a result we’re paying our own brand suppliers more for milk,” a spokesperson for Woolworths said.

“Across the dairy cabinet, brands have already increased their retail prices to reflect higher wholesale costs across the entire industry.”

Coles chief commercial officer Leah Weckert said the company was aware of increased cost of living pressures and remained committed to delivering value to its customers.

“Raising prices is never something we do lightly, however, the increased supply chain costs we are seeing, including higher payments to dairy farmers and processors, have necessitated these increases on Coles brand milk products,” she said.

Dairy industry representatives said the higher prices will make a huge difference for farmers, who are also being hit with rising production costs. Picture: Renee Nowytarger / The Australian

Coles started paying its dairy farmers more for their product from the beginning of this month and has also agreed to higher costs asked by processors who source the milk themselves to supply the company.

Chief executive of dairy co-operative Norco, which supplies Coles brand milk in Northern NSW, Michael Hampson, said the higher prices were making a tangible difference to its 300 members.

“This is especially important as farmers face pressures from rising costs of production, with many still recovering from the devastating impacts of recent unprecedented weather events,” he said.