Debate rages over impact of cheaper milk prices

AUSTRALIA Day 2011 is a day which will live in infamy for milk producers.

That's when Coles started selling $1 a litre milk, setting off a war between Coles and Woolworths, which, according to some, squeezed hard-working farmers out of a livelihood, but according to others, eased the squeeze on families.

Boyne Valley farm lost as floods and supermarket wars take toll

While consumers have been enjoying relief to hip-pockets, advocates for milk farmers say the wars have closed farms.

"There really has been little change as far as anything actually improving from a dairy-farmer's point of view," Queensland Dairy Farmers' president Brian Tessman said.

He said while the majors didn't directly deal with the farmers themselves, they did deal with the processors who dealt with the farmers.

Advocates fear that the large volume of cheap milk flooding supermarket aisles is lowering the overall price of milk, but the supermarkets dispute this.

"Woolworth's own brand milk accounts for just 3.5% of the volume of Australia's drinking milk," Woolworths said in a statement.

However, Mr Tessman says this hides the real issue.

"When the supermarkets say branded milk has regained some of its sales volume, that's only because this has lowered price in order to keep up," Mr Tessman said.

"In actual value, I don't think it's changed at all."

Topics:  coles dairy farmers milk milk price woolworths

EXCLUSIVE: More renewables projects in Gladstone's pipeline

NEW PROJECTS: Renew Estate director says the company is targeting a "20 per cent to 30 per cent reduction in energy bills for a typical home in the region.” (File photo)

"Targeting a 20 per cent to 30 per cent reduction in energy bills.”

113 jobs in the Gladstone region you can apply for right now

JOB OPPORTUNITIES: Cr Cindi Bush has compiled a list of more than 50 jobs taking applications right now.

Cr Cindi Bush has compiled a list of job opportunities.

Baby girl is Gladstone mum's sweet new addition

Reilly Gabriela Rose Norris is the second born child to mum Michelle Norris, who gave birth at Gladstone's Mater Hospital, on Monday February 12 at 9am.

A Gladstone mum is thrilled with her daughter's birth.

Local Partners