ALDI moves to increase its support for dairy farmers

From Wednesday 20 March 2019, ALDI Australia will increase the price of 2 litre and 3 litre Farmdale fresh milk by 20 cents and 30 cents respectively, with these additional proceeds being passed on to dairy farmers in full.  This represents a short-term solution to an industry wide problem that requires coordinated Federal Government-led structural reform.

Oliver Bongardt, Managing Director of Buying, ALDI Australia said: “Our decision to increase fresh milk prices has been reached in recognition of the significant issues currently impacting the dairy industry and the fact that broader government-led policy reform is unlikely to occur in the short-term.

ALDI has already taken substantial action over recent months aimed at addressing issues confronting the Australian dairy sector. This has involved us accepting cost increases from our milk processors to cater for drought and associated issues, and we have been able to do so until now without passing higher prices on to the consumer.

Today’s announcement of the price movement reflects constructive discussions with our milk processors who have worked with us to find a way to pass on the additional proceeds, in full, to the dairy farmers supplying them with fresh milk. 

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. At the conclusion of the current season*. ALDI will work with processors to ensure that prices for milk reflect the current market conditions and support the long-term viability of the dairy industry.

ALDI remains committed to the Australian dairy industry. We look forward to the introduction of government-orchestrated structural reform in accordance with the recommendations of the ACCC’s 2018 Dairy Inquiry final report.”

 
*The Australian dairy season runs from July until June.