Aldi Australia says it has increased the price of its two-litre and three-litre Farmdale fresh milk to support dairy farmers.
The retailer has put up the price of the two-litre product by 20 cents. The price of the three-litre milk has gone up by 30 cents. Aldi has promised to pass on the additional proceeds to dairy farmers “in full”.
Aldi Australia Managing Director of Buying Oliver Bongardt says Aldi made the decision to give dairy farmers some immediate relief.
“Our decision to increase fresh milk prices has been reached in recognition of the significant issues currently impacting the dairy industry,” he said. “And the fact that broader government-led policy reform is unlikely to occur in the short-term.”
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The company has already taken “substantial” action over recent months to address issues confronting the Australian dairy sector, it says. For example, it has accepted cost increases from its milk processors to cater for drought and associated issues.
In a statement on its website, Aldi referred to “constructive discussions with our milk processors who have worked with us to find a way to pass on the additional proceeds, in full, to the dairy farmers supplying them with fresh milk”.
This solution is a short-term measure, Aldi says. But it will allow processors immediately to pass additional funds to their dairy farmers outside normal seasonal adjustments.
The Australian dairy season runs from July until June. At its conclusion, says Aldi, it will work with processors to ensure prices for milk reflect the current market conditions and support the long-term viability of the dairy industry.