HIGHER prices for milk at the supermarket are a step in the right direction, according to Lake Boga dairy farmer Sally Bethune.
Mrs Bethune, who operates Bethune Lane Dairy with husband Paul, said milk should never have been sold at $1 a litre, as happened during the supermarket price wars that started in 2011.
In the past week, Coles and Woolworths have increased the price of their home brand fresh and UHT milk by 15-60 cents. One litre of milk now costs $1.60, a two-litre bottle is $3.10, and shoppers will pay $4.50 for a three-litre bottle. Prices at Aldi also rose to $1.59, $3.09 and $4.49.
The companies said the price increases reflected the higher cost of sourcing, transport and packaging, which includes record farm gate prices.
Major processors are offering up to $10/kg for milk solids to ensure supplies during 2022-23.
Mrs Bethune said the recent supermarket price rises were going some way to recognising milk’s value as a nutritious food that should be consumed every day.
“Consumers want to support Australian farmers,” she said.
“But it comes down to how much money you’ve got in your pocket to spend on groceries that week. A portion of consumers will buy the cheapest milk because that’s just how their budget works, and farmers understand that. On the other hand, milk should never have been priced at $1 a litre.”
Supermarkets only lifted prices above $1 a litre in 2019.
Fifth-generation dairy farmers, the Bethunes have an on-farm processing facility, which produces milk, flavoured milk and yoghurt under their Bethune Lane Dairy label, but sell most of their milk to a processor.
Mrs Bethune said they were happy to be receiving better prices.
“It’s not the highest that we’ve heard is available, but certainly the highest we’ve ever received on farm, historically,” she said.
“I couldn’t tell you if it’s going to last – it feels too good to be true for now – but who knows, things are different to what they used to be.”
Mrs Bethune said many consumers were aware that, even though farmers were receiving record prices for their milk, the cost of producing it also had risen.
“It doesn’t mean that farmers are suddenly raking in huge profits,” she said.
“The margins are probably not much different.”
Shoppers interviewed by The Guardian said they were sympathetic to farmers who have long battled to receive a fair price for all types of their produce.
Sue Buxton, of Murrawee, said it was “fair enough” to raise the price of milk because fuel, transport and wages had all gone up.
Jeff and Judy Powell, of Nyah West, said they had to watch their spending now that essential items such as milk, meat, fruit and vegetables and fuel were more expensive, with no corresponding increase in their pensions.
Harold Knee, of Nyah West, said the rising cost of groceries was terrible. He was appalled by the price of potatoes.
“At this price it works out to $4000 a tonne, but the farmer doesn’t get that,” Mr Knee said.
Victorian Farmers Federation United Dairyfarmers of Victoria vice-president Mark Billing hailed the move by supermarkets.
“We’ve got fertiliser costs that have gone through the roof and significant costs around energy and grain that farmers need to feed to our cows,” he said.
“Farmers can’t continue to fully absorb these costs and that’s part of the reason we’re now seeing retail level prices start to increase.
“Many dairy producers are just breaking even in terms of mounting costs. To have milk, we need dairy farmers, and this move helps ensure that.
“The retail price of milk has remained stagnant for many years now, so from a farming point of view this change has been a long time coming.”
