News

Mon, 18 Feb, 2019Basmah Qazi

Woolworths’ shock price hike: “Something needs to change”

Woolworths’ shock price hike: “Something needs to change”

It’s the item that has been widely spoken about because of its low cost, and now, after increasing pressure from shoppers, Woolworths has made the decision to raise the price of its $1-a-litre milk.

The price of the dairy essential will go up by 10c per litre starting from tomorrow, axing the initial affordable price point.

A two litre-bottle will cost $2.20 and a three-litre bottle $3.30.

Only milk that is Woolworths’ own brand will be affected by the change.

The supermarket giant hopes that the decision will help farmers who are currently struggling due to the extreme drought and flooding the country has faced.

According to Woolies’, “every cent” of the price increase will go towards the farmers who need it most.

Only last week Australia was confronted with shocking images of dead cattle who drowned in the flood that took over Townsville.

Coles, ALDI and Woolworths have been criticised for selling its own brand of milk at low prices, ultimately affecting the income of farmers.

The dairy industry has said that $1 a litre is unsustainable and was sending farmers broke.

In a statement, Woolworths Group CEO Brad Banducci said the situation for farmers was dire: “This is affecting milk production and farm viability, which is devastating for farmers and regional communities in which they live. It’s clear something needs to change, and we want to play a constructive role in making this happen.

“We believe the long-term sustainability for your dairy industry – and the regional communities they help support – is incredibly important for Australia.”

Mr Banducci is optimistic that the price increase would deliver higher milk prices to over 450 Australian dairy farmers who are responsible for supplying Woolworths-branded fresh milk.

“While we’re realistic this won’t solve broader structural issues, we hope it will help inject much needed confidence into the sector and the regional communities’ dairy farmers do so much to support,” he said.

Out of the major supermarkets, Coles was the first to reduce their milk prices to $1 a litre. The move – which was put in place in January 2011 – ensued major backlash as dairy farmers were forced to drop their prices in order to compete.

Do you think Woolworths’ has made the right decision? Will you be supporting this price increase? Let us know in the comments below.

Comments