Coles and Aldi axe $1 milk to support Australia's farmers

The companies announced the move on Tuesday evening. Source: AAP

Coles and Aldi will charge more for their two and three litre bottles of milk from Wednesday, as they await reforms to make the dairy industry more sustainable.

Supermarket giants Coles and Aldi are raising the prices of their two and three litre bottles of milk, vowing to pass the extra money onto Australian dairy farmers.

From Wednesday, the two supermarkets will add 10 cents per litre to each bottle, making their two-litre bottles $2.20 and three-litre bottles $3.30.

The companies each announced the step in respective statements on Tuesday evening.

Coles, along with Aldi, is raising the price of its milk.

They have both stressed the price spike is a short-term solution to an issue that demands structural reform, led by the federal government.

Coles Group chief executive officer Steven Cain said his company is endeavouring to help make the dairy industry more sustainable, alongside government and industry stakeholders.

But he said farmers can't wait for such long-term changes to be made.

"We are moving to provide relief right now," he said.

Aldi's Managing Director of Buying Oliver Bongardt said the decision recognises the "significant issues" currently facing the diary industry.

"This solution is a short-term measure and will allow our processors to immediately pass additional funds to their dairy farmers outside of normal seasonal adjustments," he said.

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