Smaller retailers defend ‘ridiculous’ increase in milk prices

Coles has increased the price of its milk and some labelled the rise as “ridiculous” but smaller retailers have defended the move, saying there is no other option.

Smaller retailers have defended the rising cost of milk arguing it should never have been sold so cheaply, after Coles was slammed for increasing the price of its 3L carton.

A picture was shared to the Facebook group “Simple Savers” on Wednesday of a 3L carton of Coles full cream milk with a $4.50 price tag – a spike of 60 cents.

Some people in the Facebook group pointed out $4.50 was a “ridiculous” price, while others defended it.

But NSW dairy business, Hunter Belle Dairy Co, which handmake a range of dairy products including cheese, milk, butter and yoghurt, has hit out at suggestions the price rise is ridiculous, saying the alternative is to sell at a loss.

“The only ‘ridiculous’ thing is that people think milk should be that cheap in the first place,” the company wrote on their Facebook page.

“We’ve also, regrettably, had to just increase our prices after trying our hardest to absorb cost increases ourselves, the alternative being we sell at a loss.

“On the plus side we’re paying our farmers more, and our milk is as delicious as ever. We hope we still get the amazing support from our Hunter locals that we have received over the last 5 years, you are so greatly appreciated.”

Hunter Belle Dairy Co’s products. Picture: Jenifer Jagielski

The Hunter Valley based business, which was established in 2014, is headed up by husband and wife duo Jason and Annie Chesworth, with the family having milked cows in the region for over 100 years.

The Hunter Belle Dairy Co’s post attracted 1300 likes and a 322 comments, with most supporting the milk price increases, particularly if farmer’s are paid more.

“For three litres that’s not expensive, people will drop $5 for a coffee, about time farmers got more for their product,” one woman wrote.

“Knowing first hand what dairy farmers do each day, as I have 2 uncles who are dairy farmers. It’s still too cheap. My uncles work so hard 7 days a week. They deserve more for their hard work,” another said.

Cheesemaking at Hunter Belle Dairy Co. Picture: Alexander McIntyre

“Absolutely happy to pay the extra. Costs of diesel to transport the milk and the cost to farmers to run the property and trying to make a living wage, not to mention the epic droughts, fires and floods that have caused damage to infrastructure,” added one woman.

“Still very affordable compared to beer and petrol. It’s takes a lot of work to get it to the supermarket,” one man commented.

The price of milk has become a talking point on Facebook.

Prices for Coles other milk have also gone up with the 2L is now $3.10, up from $2.60, and 1L is now $1.60, up from $1.35.

Coles said it increased prices after recent increases in sourcing, transportation and packaging costs.

The supermarket, along with Woolworths and Aldi, increased their milk prices by 10c a litre in December last year. It had been the first rise in more than two years.