April 28, 2026

Coles' milk price increase not enough to help Australia's milk producers, farmers say

Australian dairy farmers have raised concerns that a recent milk price increase by Coles is insufficient to address the financial strain facing producers.

While the retailer positioned the move as support for the sector, farmers argued the adjustment falls well short of covering rising production costs.

Producers point to escalating expenses across key inputs such as feed, fuel, and labor, which continue to erode farm profitability. Despite incremental price gains at the retail level, many farmers said they are still operating under tight or negative margins, highlighting persistent imbalances in the dairy value chain.

The situation underscores broader structural challenges within the Australian dairy industry, where bargaining power remains uneven between retailers and primary producers. Farmers stress that modest retail price increases do not necessarily translate into meaningful improvements in farmgate milk prices.

Industry voices emphasised the need for more substantial and sustained pricing mechanisms to ensure the long-term viability of dairy farming. Without stronger returns, producers warn of continued exits from the sector, which could impact domestic milk supply and industry stability.

For the global dairy community, the case reflects ongoing tensions around price transmission, cost inflation, and supply chain equity.

As input costs remain volatile, ensuring fair value distribution will be critical to maintaining resilient and sustainable dairy production systems.

- 9Honey (Nine)