Milk prices are once again in the spotlight as struggling Australian farmers are put first.
Coles and Aldi have announced that they will increase the price of their branded milk by 10 per cent as of March 20.
The supermarket heavy-weights have promised that the full benefit of the price increase will be passed onto Australian farmers through higher farm gate prices.
NSW Farmers dairy committee chair, Erika Chesworth, described the news as a huge win for dairy farmers.
"The NSW Farmers dairy committee and all dairy farmers have been fighting for this result since $1 litre milk was introduced in 2011," Chesworth said.
"It is extremely positive that they have also committed to ensuring that farmers that supply fresh milk for their private labels will receive the additional money."
This decision comes off the back off mounting pressure from the community after Woolworths announced a similar increase in February 2019.
Managing director of buying at Aldi Australia, Oliver Bongardt, was pleased with the decision.
"We look forward to the introduction of government-orchestrated structural reform in accordance with the recommendations of the ACCC's 2018 Dairy Inquiry final report," Bongardt said.
Coles chief executive officer, Steven Cain, said that 100 per cent of the Coles brand fresh milk is sourced from Australian farmers, many of whom are struggling.
"Coles supports proposals to make Australia's dairy industry more sustainable, and we will continue to explore long-term solutions with government and industry stakeholders," Cain said.