Milk price hike 'great news' for dairy farmers

There is finally some good news for our farmers as Woolworths made a significant announcement today.

'GREAT NEWS': Coolabunia dairy farmer, Damien Tessmann said Woolworths removing $1 milk gives a much needed boost and confidence to the dairy farmers. Picture: Kate McCormack

THERE is finally some good news for our farmers as Woolworths made a significant announcement today.

The supermarket chain will remove $1 per litre fresh milk in support of a more sustainable Australian dairy industry.

Woolworths' $1 per litre milk will be removed from sale nationwide from Tuesday, February 19.

Coolabunia dairy farmer Damien Tessmann said it was "great news" for the industry, which had been short on wins over the past decade.

"Milk went to $1 in 2011, that equates to roughly about 78c in today's money," he said.

"The milk stayed the same price, but costs continue to go up."

Mr Tessmann said the move by Woolworths gave a much-needed boost of confidence to dairy farmers.

"This gives the right signals to dairy farmers. It tells them they can be confident to invest and grow their businesses," he said.

"But the job is not done until the other major retailers act."

The move will see the supermarket sell two and three litre varieties of Woolworths branded fresh milk for $2.20 and $3.30 respectively.　

Every cent of the increase will end up with Australian dairy farmers.

As the price change goes national, it will deliver higher milk prices to more than 450 Australian dairy farmers supplying into Woolworths-branded fresh milk. 　

Australian Dairy Farmers CEO David Inall said this was a huge step forward for the dairy industry.

"There is no doubt that this is a game changer in the fight against discount dairy that has long frustrated the industry," he said.

"Removing $1 milk is not just intended to restore farmers' financial confidence, but it will also boost confidence in regional communities and small businesses that rely on the industry."

Now that Woolworths has shown their commitment to assisting Australian dairy farmers, South Burnett's Damien Tessmann encouraged Coles to do the same.

"Obviously there is no Coles supermarket in the South Burnett but we can still encourage our friends and relatives in other regions not to shop at Coles," he said.

"This move by Woolworths has proven consumers vote with their wallets."

Mr Tessmann said he might even go back into Woolworths after putting a self-imposed ban on shopping at the supermarket giant since the induction of $1 milk back in 2011.

"I do like shopping at IGA, but I will definitely stop lecturing people about why they shouldn't shop at Woolworths," he said.

Originally published as Milk price hike 'great news' for dairy farmers