The supermarket, rocked by stinging criticism of its “hollow” drought fund raising efforts, has also teamed up with northern NSW and southern Queensland farmer-owned dairy processor, Norco, which will assist its co-operative members to apply for funding through the Coles Drought Relief Fund.
“We look forward to working with them,” a statement from the retailer said.
“A 10c/litre levy on all fresh milk would cost Australian consumers $250 million a year - a cost that would fall disproportionately on the 40 per cent of households who have only $150 a week to spend on their grocery shop.” - Coles statement
However, the company dismissed dairy industry calls for the 10 cents/litre price increase to be extended to all white milk products in its dairy cabinets, arguing shoppers can’t afford the cost.
“Based on data from Dairy Australia, a 10c/litre levy on all fresh milk would cost Australian consumers $250 million a year,” Coles said.
“That’s a cost that would fall disproportionately on the 40 per cent of households who have only $150 a week to spend on their weekly grocery shop.”
Aldi also insisted it was working directly with its suppliers to help ease their drought pricing pressures, but was not passing on to customers any price increases it paid to dairy farmers.
“Without a transparent, auditable and equitable process for funds collection and distribution, we believe that it would be irresponsible of Aldi to tax consumers on the purchase of milk,” an Aldi spokesman said.
The retailers’ comments follow Agriculture Minister David Littleproud again attacking Coles and Aldi this week over their responses to his earlier criticism of their handling of drought relief efforts.
Mr Littleproud yesterday called out Coles for its “milk levy” which would not go back (at 10c/litre) to those farmers who supply it – “because Coles doesn’t even know which farmers supply it milk; it deals with a milk processor instead”.
He also criticised German retailer Aldi, “which sells very cheap milk” for not participating in any kind of dairy pricing reform, calling it a “one finger salute” to Australian dairy farmers.
“Coles, together with our customers, has already committed more than $12 million to assist drought affected farmers in all sectors across Australia, and until the end of the year we will be raising money for dairy farmers affected by drought through a 30c increase on the price of our three-litre own brand milk across Australia,” the company statement said.
“The distribution of all funds will be independently audited by PwC.
“As we have for the past 10 years, Coles remains committed to helping Australian families with the cost of everyday living, by delivering great value on the items they buy most often.”
