Milk price wars must end: Qld premier

QUEENSLAND Premier Campbell Newman says the supermarket milk price wars will crush his state's dairy industry.

Milk on sale inside a Woolworths grocery store in Brisbane

QUEENSLAND Premier Campbell Newman has again called for federal intervention in the supermarket milk price wars, saying they will kill the state's dairy industry.

Coles, Woolworths and Aldi supermarket chains last year dropped their home brand milk price to $1 a litre.

Australian Dairy Farmers campaigned against the cuts, which they said had caused major reductions to the income of farmers.

Scores had already left the industry in Queensland.

At an AgForce meeting in Gladstone on Friday, the premier again called for federal intervention in the milk price wars.

Mr Newman said he was deeply concerned about the actions of major supermarkets to drive down the prices they paid dairy farmers.

"It's getting to a point where we will not have a viable, sustainable dairy industry in this state," he told the Courier-Mail newspaper.

"I'm calling on supermarkets to negotiate proper supply agreements that keep the industry alive."

"It's time the Australian Competition and Consumer Commission and the federal government had a proper look at this issue."

Comment has been sought from Coles, Woolworths and Aldi.