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?
                                    

5 comments:

  1. Louise! Your blog is prettied up! Gorgeous!!
    I had initial good thoughts that the milk price would help us - on support pensions.. And yes I HAVE to buy it still .. But I have s tweep friend whose Dad and brother have been / are dairy farmers and they've told of the price war flow on effects.
    I hate that Woolies and Coles wield so much power!

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  2. Hi Louise! I LOVE your blog. I can tell you're from my tribe. I'm with you on the milk issue. I refuse to buy Coles/Woolies/IGA brand milk because I worry about the impact on our farmers.

    Keep up the good work!

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  3. It is a difficult choice Louise, particularly for people on very limited incomes who have children. I have bought the cheaper milk although I notice that it does not include skim milk. Whilst I try to make ethical purchases when shopping in large chain stores, there are times when I quite simply have to go for the cheapest, even when I would rather not.

    Well done with your blog by the way, it's looking fantastic and you write so well.

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  4. Great post, such an interesting point to raise. I hadn't really thought about this before. I usually buy Dairy Farmers or long life milk - I don't think I'll change this habit!

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  5. Hi Louise,

    I visited your blog for the first time today (thanks for the link!) and wow! Impressive! I love the issues you write about and the way you think about how *this* affects *that*. Really inspiring.

    As for the milk... I once worked with a woman whose husband was a Dairy Farmers ummm... member? franchisee? milko? Basically he owned a milk run that was 100% Dairy Farmers product. She told me about the effect that Woolies had on their livelihood ... not pretty.

    Well done! Thanks for writing about it :)

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