The call for action follows a quiet price lift by Coles and Woolworths, which has seen the cost of two litres of home-brand milk rise from $3 to $3.20. While the supermarkets have implemented the increase, Australian Dairy Farmers hopes it will be passed back to the farm gate. According to the organization’s president, Ben Bennett, this is a crucial step to address the imbalance that has constrained the flow of money back to producers for more than a decade due to supermarket discounting.

This issue is a prime example of the challenging dairy economics at play within a market dominated by a few large retailers. Mr. Bennett highlights that dairy farmers are often “price takers” in a supply chain where everyone else takes a cut. For many producers, the cost to produce milk is currently higher than the price they are paid for it, making any increase, no matter how small, a welcome relief. This data journalism from the industry’s perspective underscores the need for a more equitable pricing system.

The industry’s plea is a direct response to the rising costs that have made the current season particularly tough. Dairy farmers are facing skyrocketing expenses for essential inputs like feed, which threaten to push some out of business. The proposed price increase, therefore, is not about profit but about survival, providing a much-needed buffer against the economic and environmental pressures that are impacting producers across the country.