Thursday, March 3, 2011

The milk price cut - who really benefits?

In January 2011, Coles supermarket lowered the price of home brand milk to a dollar per litre.
When I first heard this I thought that perhaps this was a good thing, after all living prices are expensive so if this helps make it cost less, why not?

The chief executive for Aussie Farmers Direct, Braeden Lord has said, 'they can't denigrate the product by reducing the price without some knock-on effects in the milk supply chain.'
By bringing the prices down, the dairy industry will be severely effected.
Many farmers were affected by the recent flooding, they are trying to keep up financially and some fear that this will be a strong blow to them. A large dairy farm co-operative have said that in some parts of NSW and QLD, those in the dairy industry earned 54.11 cents per litre, only 4 cents more than the break even price in 2009-10. Coles has said that they would absorb the price cuts but some have thought that if the price cut stays for a lengthened time it would have to impact the farmers.

Apart from this, quality could be effected.
Aussie Farmers Direct have said that the generic milk sold in supermarkets is often diluted with byproducts from the cheese industry.
Aussie Farmers Direct milk does not contain any extra permeate which is a natural byproduct that many large milk companies add a lot of to help level the amount of fat in each bottle.
Braeden Lord has said that his company do not add it to their milk as they believe it takes away the real taste of the milk
The Tasmanian milk processor, Betta Milk have discouraged customers from buying 'inferior quality dairy products from mainland producers.'
I know that for many this price cut will come as a blessing but for the farmers it seems to be a curse. I encourage you, that if your budget it can take it, support farmers and don't buy Coles brand milk.
Will you be buying Coles brand milk? Why? Why not?