Originally published by Cameron Micallef of The West Australian.
19.04.2026
Farmers say the price of a key household staple is about to skyrocket, and are urging the supermarket giants to “play fair” or risk the viability of Australia’s dairy industry.
Producers say their livelihoods are at risk, as surging diesel, fertiliser and transportation costs smash already thin margins. Because of these higher input costs, Woolworths has announced it will pay farmers directly linked to its Farmers’ Own brand 10¢ more a litre, which will help about 20 farmers.
The nation’s biggest dairy company Lactalis — which includes brands such as Ice, Oak and Pauls — will pay an additional 5¢ litre to more than 800 farmers starting from May 1.
Australian Dairy Farmers president and dairy farmer Ben Bennett warns the current support from the supermarkets simply does not go far enough to help the industry.
“The supermarkets are just not playing a fair game. Woolies standing on the pillar of self- righteousness, ‘Oh, our 20 farmers we’ve given them 10¢ more’, but what about the other 3990 mate?”, Mr Bennett said.
“It is all very sanctimonious.”
A Woolworths spokesperson acknowledged the pressure Australian farmers were under, but said households were also feeling the pinch.
“We’re committed to doing what we can to buffer customers at the checkout and absorb some of those extra costs in our supply chains,” a Woolworths spokesperson said.
“We also recognise suppliers, Aussie farmers and transport partners are navigating difficult cost increases like the rise in fuel prices, and we are working to find the right path through.”
While Coles didn’t specifically comment on milk, it said there were pressures across several key agricultural input costs.
“We are continuing to work with our long-term direct suppliers, including Australian farmers, to manage cost pressures, support continuity of supply, and smooth the impact on consumers,” a Coles spokesperson said.
