Coles, Woolworths to raise the price of milk to assist drought-stricken farmers

Coles and Woolworths will introduce a 10 cent a litre levy on its own milk brand, a move done to help drought-stricken farmers.

Milk inside a Woolworths grocery store. (Stock Image) Source: AAP

Australia's two major supermarkets will put a levy of 10 cents a litre on a special drought relief milk.

Woolworths announced it will introduce a special range of drought relief milk at $1.10 per litre from mid-October.

Until the range hits the shelves, Woolworths' 3L Full Cream and Lite milk will rise from $3 to $3.30 with the extra 10 cents per litre going towards drought affected dairy farmers.

On Thursday, Coles said it would also increase the price of its 3L Own Brand milk from $3 to $3.30 until the end of the year. The extra 30 cents will go to farmers affected by drought.

"I rang retailers three weeks ago and asked them to consider a voluntary levy for our farmers and I'm rapt they've come to the party," Agriculture Minister David Littleproud said.

It comes amid a myriad of campaigns raising funds for farmers struggling against bone dry conditions, and follows a Queensland Dairyfarmers' Organisation petition calling on Australians to shell out.

Woolworths Director of Fresh Food Paul Harker said customers were asking the supermarket giant to help farmers during the difficult times.

“Many of our customers have told us they want to help and are willing to pay more for their milk to do so," he said in a press release.

“This new range of drought relief milk will provide customers with that choice, safe in the knowledge the extra money will flow through to dairy farmers in drought-affected areas.”

Stock gather to feed at Langawirra Station north of Broken Hill, New South Wales, Monday August 20, 2018. Source: AAP