Woolworths stores in Orange will join a nationwide move to remove $1 per litre fresh milk from sale from Tuesday.
The supermarket chain will sell two and three-litre varieties of Woolworths branded fresh milk for $2.20 and $3.30 respectively.
The NSW Farmers’ Association said it was delighted with the Woolworths announcement to stop the sale of $1 a litre milk permanently.
“Today is a huge win for dairy farmers,” NSW Farmers’ Dairy Committee Chair Erika Chesworth said.
“We and all dairy farmers have been fighting for this result since $1 a litre milk was introduced in 2011. This announcement is about attempting to regain some of the trust big retail corporations lost when they started selling $ 1-litre milk.
We have endured years of low profitability and our costs of production have skyrocketed due to the ongoing drought.NSW Farmers’ Dairy Committee Chair Erika Chesworth
“This is a lesson for every other retailer in the country. Woolworths have done this the right way. They engaged with dairy farmers when we raised our concerns. This decision shows that they have listened and taken decisive action.”
Ms Chesworth said the public could be completely confident that the additional money from two and three-litre Woolworths milk is flowing back to dairy farmers.
“We have endured years of low profitability and our costs of production have skyrocketed due to the ongoing drought,” she said.
“Milk production has plummeted 11 per cent over the last 12 months in NSW and Woolworths are the only supermarket to show leadership and provide genuine support for farmers.”
Emma Elliot of Little Big Dairy said despite the goodwill of the Woolworths announcement people still need to buy local milk because it sustains their farm.
Woolworths Group CEO Brad Banducci said supporting the long term sustainability of the dairy industry - and the regional communities they help support - is incredibly important.
“In our consultation with industry bodies, including the Australian Dairy Farmers Association, its state members and NSW Dairy Connect, we’ve heard the outlook will continue to be extremely tough for dairy farmers right across the country,” he said.
“It’s clear something needs to change and we want to play a constructive role in making this happen.
“We hope this move will help inject much-needed confidence into the sector and the regional communities dairy farmers do so much to support."
Ms Chesworth has called on Coles and Aldi to follow Woolworths lead and cease the sale of $1 a litre milk.
“They must act now to ensure that this move is permanent,” she said.
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