Supermarkets under pressure over 'cheaper than water' $1 milk

Major supermarkets are under pressure to stop selling milk for as little as $1 a litre as dairy farmers battle rising costs and drought.

The industry has called for a 10c a litre milk levy to help support farmers.

Agriculture Minister David Littleproud said on Wednesday that he supported “the principle of a temporary levy” of 10 cents per litre on milk sales, with the money “to go directly to farmers”. He said his department was investigating how a temporary levy could be implemented.

“The dairy sector in particular is having a tough time. Many of our farmers are being paid less than the cost of production. This is unsustainable,” Mr Littleproud said.

“If our farmers don't make it through the tough times, they won't be there to supply Australia milk in the future. The fact is $1 milk has devalued the milk category in the eyes of consumers by making it cheaper than water,” he said.

Mr Littleproud said he had met with Coles and Woolworths and discussed a levy, adding that “Woolworths has shown leadership on this issue. They say they’re on board so long as other retailers are too”.

Read the story from The Age by Darren Grey and Patrick Hatch -  “Supermarkets under pressure over 'cheaper than water' $1 milk.”