Australian dairy farmers expressed concerns following Coles’ decision to slash the price of their home brand fresh milk by up to 33 per cent.

The price of Coles Brand fresh milk is being cut by as much as 33 per cent from today as part of its ongoing “Down Down” campaign to reduce the price of products its customers buy the most.

Australian Dairy Farmers (ADF) vice president Chris Griffin said “ADF is concerned that Coles is selling milk at an unsustainable price. This marketing tactic is apparently made without any concern for dairy farmers who work hard to produce a high quality, nutritious food for Australian consumers.”

“The impact of this pricing decision will ultimately flow on to hit dairy farmers at a time when they are struggling to respond financially to years of drought and now floods,” Mr Griffin said.

The dairy industry is pulling together as a community to assist those farmers that have suffered during this devastating flood crisis.

“Our aim is to get dairy farmers quickly back on their feet in an effort to prevent cost increases for consumers,” Mr Griffin said.

“However, we fear that Coles’ decision will come as a blow to many dairy farmers battling towards recovery.”

ADF considers that consumers understand the devastation that the floods have caused to all farmers and are appreciative of the efforts of dairy farmers to maintain production levels and thereby prevent the need for milk price rises.

“We are at a loss however, to understand how setting a new low for the retail price at a time when the price of other commodities is rising, is of benefit to the industry,” Mr Griffin said.

In a statement released today, Coles said “Customers in every state will continue to enjoy the same high quality milk they have come to expect from Coles but at a new regular low price of $2 for a two litre bottle of Coles Brand milk.”

Significantly the price cut also includes Coles Brand lite milk which will be cut to the same low price of $2 for a two litre bottle, bringing it into line with full cream milk so customers will no longer have to pay a price premium for a lower fat milk option.