MANY dairy farmers across Australia will receive a much-needed income boost from today, with supermarket giants Coles and Aldi committing to raise the price of their discount milk.
Dairy farmer group Australian Dairy Farmers praised the supermarkets for the move.
The price will jump 10 cents to $1.10 per litre, with the entire price increase going back to the farm gate.
"The supermarkets made the right decision to increase the price of its discount milk brands and they should be commended for their initiative in working to end this price-freezing practice," ADF chief executive David Inall said.
"Farming families put tireless effort and resources into producing a quality product and there is no question that supermarket discounting has had an incredibly demoralising and negative financial impact on the Australian dairy industry over the last eight years."
The price of Coles and Aldi brand two litre milk will rise to $2.20, with three litres rising to $3.30 as a result of the increase.
The supermarket said in a statement it will "work with dairy processors to ensure that the benefit of this retail price increase will go directly to the dairy farmers who supply Coles brand milk to our customers."
Mr Inall said the price announcement was the culmination of extensive talks between Coles and ADF.
"We have had a number of constructive meetings with Coles executives and we now welcome the opportunity to re-engage under these circumstances and continue the discussion regarding those medium-to-long-term issues that will assist this industry to move forward," he said.
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