Australia pays the lowest price for cheese in the western world

Despite cost of living pressures, Australian shoppers are paying some of the lowest prices in the world for a block of cheese.

Australians are paying the lowest prices for cheese in the industrialised world, with some supermarkets selling block cheddar lower than $9 a kilogram.

Aldi is currently retailing the lowest priced cheese with its Westacre Tasty block at $8.79 a kilo, more than a dollar lower than other generic brands.

Woolworths ‘phantom generic’ brand Hillview Tasty retails at $10 a kilo in Victoria as does Coles Cheddar, while Woolworths generic brand tasty sits at $12.50 a kilo.

United Dairyfarmers of Victoria president Mark Billing said the price of cheese in Australian supermarkets was low by international standards.

Woolworths-owned Countdown supermarkets in New Zealand sell their generic cheese for $A13.21 a kilo while its Kiwi competitor New World sells its in-house brand at $14.57/kg.

“Dollar a litre milk received a lot of attention, quite rightly, but cheese is also very cheap considering the rising cost of production,” Mr Billing said.

“While food inflation rose 17 per cent last year, very little of that has flowed onto the dairy cabinet. The price of most dairy products sold in Australia has changed little in the past few years but the costs that go into making those products have changed significantly.”

Australian shoppers are paying rock bottom prices for cheese. Pictures: ANDY ROGERS

It takes 10 litres of milk to produce one kilogram of cheese, to which manufacturing, storage, shipping, packaging and retail margins must be added.

The wholesale price of cheddar has hovered around the $A4.50 to $A5.00 mark for the past few months on the Global Dairy Trade index.

Mr Billing said a trade off with the low price of Australian cheese was that it kept foreign imports at bay.

“There’s always a concern that excess supply in the United States, for example, can be shipped to Australia and undercut local produce,” he said.

“So as much as the industry would like to see higher prices, you also have to consider the potential for cheap imports.”

All three major supermarket chains now sell Australian-made generic cheese, marking a change in the retail sector since 2017 when in-house cheddar was often imported from New Zealand.

South Australian Dairyfarmers Association president John Hunt said the retail price of Australian dairy was very affordable for consumers compared to other western nations.

“Yes, cheese is very cheap and how long it stays that low is anyone’s guess,” he said.

“The supermarkets are now getting more involved in the production side and they either have to absorb costs or pass it onto the consumer.

“For the past three years, we’ve been getting a good return at the farmgate, which is welcome.

“The consumer has to pay a fair price to ensure the sector is viable- simple as that.”