Supermarket giant Coles' drought relief milk levy promotion is just a media stunt and doing little to actually help struggling farmers, according to Federal Agricultural Minister David Littleproud.
He said there was no guarantee that funds raised by the supermarket's temporary milk levy would actually go back to the farmers who supplied the milk.
“The reality is, it’s three parts of bugger all and then they're going to ask dairy farmers to fill out a piece of paper to apply for it," he said.
"We don't even know if the right dairy farmers will get it. It's quite simple. Woolworths went straight to the processor and said you know who gives me the milk, we pick it up. Give it back to them.
Agriculture Minister David Littleproud has slammed the big supermarkets. Source: AAP
"It’s not rocket science, and it’s just being disingenuous. It’s lazy at best, but I think they’re being slippery.”
The Minister's comments come after Woolworths responded to calls from the dairy industry by announcing it would increase the price of its own brand milk by 10 cents a litre as part of a drought relief milk range.
Coles has introduced a 30 cent surcharge on all of three-litre home brand milk products, with the funds to be distributed via the Dairy Drought Relief Fund.
According to the supermarket giant, any Australian dairy farmer affected by drought is eligible to apply.
John Fairley has been supplying milk to Woolworths and Coles for a decade, and said the only way for the industry to be sustainable is to permanently end dollar-a-litre milk.
Coles and Woolworths are being urged to do more to help farmers struggling in the drought. Source: AAP
"Coles and Woolies, all supermarkets, need to know if they keep stressing the industry out like this, they may have a real problem with supply in the future," he said.
"When you go into a shop you really have to think about the source of that milk and is it an ethical milk. Are they paying their farmers a sustainable price because at the moment it's just not sustainable for the farmers at all."
Mr Littleproud also slammed Coles for only applying the drought levy on the 3 litre milk bottles - while asking farmers to apply for grants if they want to see any of the funds.
Dairy farmers say supermarkets could help them by stopping the dollar-a-litre prices. Source: AAP
But Woolworths said more than 280 farmers will begin receiving monthly payments this week, as part of its $500,000 drought relief range.
