Despite Australia being a prosperous nation, 11 per cent of adults in the country and 12 per cent of children live in poverty. About one million Australian children do not always have enough to eat.

Efforts of Foodbank, the largest hunger relief organization in Australia, to reach these needy residents got a boost following the commitment by the Australian dairy industry to provide one million litres of milk yearly for residents in need.

The commitment would mean 10,000 servings of free milk would be availably daily for 365 days which would save welfare agencies in Australia $2 million. The milk would be delivered to all states weekly.

"In these highly competitive commercial times it is great to see such an iconic Australian industry set aside competition to rally together to support those struggling in our community," Foodbank Australia Chief Executive Officer John Webster said in a statement.

Because of the rising cost of living in Australia which has placed more pressure on other groups such as seniors, single mothers and the employed poor, the type of people seeking assistance from charities for food has expanded beyond the homeless people.

The free milk would free more money for welfare agencies to purchase other needed items for their food and other programmes, said Ian Bedford, chairperson of Uniting Care Wodonga.

Foodbank, which distributed 21 million kilogrammes of donated food and groceries in 2010/11 that helped feed 75,000 Australians daily, sources key staples and distributes it to 2,500 welfare agencies that rely on Foodbank for food.

The charity works with the food industry, government and corporate sponsors to produce core food items such as pasta and pasta sauce, breakfast cereal and canned fruit and vegetables. Foodbank facilitates the production, processing, packaging and transport of these items using ingredients and services donated or provided at minimal cost.

Mr Webster said that while Foodbank gets substantial amounts of rescued food from donors, there is still a large gap in the amount of staples it receives and what is need to feed Australians who rely on food relief. He said the charity's Collaborative Supply Programme helps bridge that gap.

Foodbank's partners in the programme are: Bega Cheese, Fonterra, Lion, Murray Goulburn, Ramalat, Tatura Milk Industries and Warmambool Cheese and Butter.

"The dairy industry is proud to partner with Foodbank to help support those less fortunate. From the outset, the dairy companies have been unanimous in their commitment to making healthy and nutritious milk available for all Australians," Bega Cheese/Tatura Milk Industries Executive Chairman Barry Irvin said in a statement.