Woolworths scraps $1-a-litre milk to support Australian dairy industry

Woolworths will scrap its $1 dollar-a-litre milk in support of a more sustainable Australian dairy industry.

From tomorrow, Woolworths will remove $1 per litre milk from all stores around the country with its own brand milk to sell for $2.20 and $3.30 respectively.

Woolworths has announced plans to permanently increase the price of milk with the extra cost to be passed onto dairy farmers. 

Woolworths Group CEO Brad Banducci said the move would deliver higher prices to more than 450 dairy farmers.

Dairy farmers have rallied against $1 per litre milk ever since the supermarket giants started their price war in 2011, arguing the cheap price was unsustainable.

There was an emotive video last week from the daughter of a South Australian dairy farmer who was farewelling the herd as they abandoned the farm.

Casey Treloar, from South Australia, a third generation dairy farmer saw her facebook go viral with emotional farewell video.

The supermarket giant and rivals Coles previously put up the price of their two and three litre milk varieties in September as a temporary drought relief measure. 

Australian Dairy Farmers CEO David Inall welcomed Woolworths’ move, describing it as a ‘game changer’. 

“It is reassuring that Woolworths has committed to deliver the full 10 cent increase back to those farmers who supplied the milk into that product category,” Mr Inall said. 

“Removing $1 milk is not just intended to restore farmers’ financial confidence, but it will also boost confidence in regional communities and small businesses that rely on the industry."

Coles is yet to announce if it will follow Woolworths’ lead.