Woolies scraps milk for $1 a litre

SUPERMARKET giant Woolworths has thrown struggling dairy farmers a lifeline by scrapping its $1-a-litre milk.

Pressure is now mounting on Coles and Aldi to follow suit and also increase prices to $2.20 for two litres of milk and $3.30 for three litres.

Woolworths phases out its $1-a-litre milk from today, with more than 450 dairy farmers nationally who supply milk to the supermarket to pocket the extra 10 cents per litre.

A milk-price war broke out in Australian supermarkets in 2011 when Coles slashed its own-brand price to $1 a litre.

Farmers and politicians have been aggressively campaigning for the dirt-cheap price to be scrapped, arguing that when combined with crippling drought it was killing the industry.

Woolworths Group chief executive Brad Banducci said the price increase was needed for the long-term sustainability of the dairy industry and regional communities.

“We’ve heard the outlook will continue to be extremely tough for dairy farmers right across the country,” he said.

“This is affecting milk production and farm viability . . . It’s clear something needs to change.”

Federal Agriculture Minister David Littleproud said he hoped the decision was the beginning of the end for Australia’s “$1 milk disaster”.