Have you noticed milk prices have gone up at the supermarket?
Coles announced it would ‘reluctantly’ raise its own-brand milk by 10 cents a litre to $1.70 for one litre and $3.30 for two litres.
“We don’t take the decision to raise prices lightly, particularly because of the increased cost-of-living pressures faced by our customers,” a Coles spokesperson said recently.
According to ABC News, the latest increase means milk has gone up by 21 per cent in one year.
So what’s behind the price rise? Well, partly, supermarkets themselves are to blame.
Remember when the supermarkets got into a price war over milk and slashed prices about 10 years ago? Well, that bird has well and truly come home to roost.
Price takers
With the deregulation of the industry in 2000, dairy farmers became price takers instead of price makers and the supermarket price war put massive pressure on their income while they still had to battle rising prices for feed, fertiliser, power and other inputs.
And dairying is a hard life. Not too many people want to milk cows two times a day, with that first milking well before the sun rises. Staff were also hard to come by for the same reason.
As a result, many left the industry for less onerous farming enterprises such as cattle or sheep grazing or cropping.
Peak industry body Dairy Australia estimates 2350 dairy farmers have left the industry since 2011 and the $1 litre milk price. That leaves only 4420 dairy farmers left, so a fall of about one third.
In 2019, Coles, Aldi and Woolworths agreed to lift their prices by 25 per cent, but by that time the damage was done.
So, that makes it a supply and demand situation. Milk and milk products become more valuable as the supply shrinks.
In some good news, Dairy Australia says Victorian farmers had a record profitable year for 2023 with a jump of 33 per cent, the highest since the body began collecting statistics 17 years ago.
However, expect the price rises to continue as more farmers swap out of dairy.
This week’s best deals
Aldi
Sensible: World Kitchen Pork and Ginger Dumplings, $5.49. I’m a great lover of dumplings and the convenience of someone else making those dumplings. You don’t even have to boil these, just stick them in the microwave. Lazy cooks rejoice.
Indulgence: It’s European specialities week and the whackadoodle names do not disappoint. Fancy some Lambertz Herzen Lebkuchen? Or Sfoglie Croccanti, or Weiss Oblaten Lebkuchen? They sound like eastern European train stations, but are in fact a variety of sweet snacks. Prices start at $2.99 for the Schluckwerder Marzipan Kartofflen which is apparently delicious cocoa-dusted ‘baubles’ of traditional marzipan. Sounds ghastly, if I’m honest.
See the catalogue here.
Coles
Sensible: Cadbury sharepacks, half price to $2.50. Choose your own adventure. Stock up for Halloween early, or damn those pesky kids and eat them yourself.
Indulgence: Lamb Leg Boneless, $16/kg. Lamb continues its steady slide but it will soon be back to stratospheric levels when the market steadies. Boneless makes a quick roast or cut it up for an easy curry.
See the catalogue here.
Woolworths
Sensible: Washed white potatoes, $4 for 2kg, save $3.50. You may not need potatoes yet, but you may soon. Buy them anyway at this price. Woolworths is promoting this in its ‘prices dropped for spring’ section so expect this special for a few more weeks.
Indulgence: Mersey Valley Cheese varieties, $6, save $3. I don’t care how many fancy schmancy cheeses you put on your fancy schmancy cheeseboard, if it doesn’t have a Mersey Valley, I’ll be a little bit disappointed. Get some on special now.
See the catalogue here.
IGA
Sensible: Vita-Weat varieties, $3.05, save $1.35. I’m not sure why I like Vita-Weat, on the first bite, the mouth feel is akin to what I imagine cardboard is like, but not an hour later and half the pack is gone. Is it a self-punishment thing?
Indulgence: Betty Crocker Baking mix varieties, $5.35, save $2.35. Sometimes you just need a cake or some biscuits and you don’t want to work too hard at it. It’s always good to have one pack of these lurking in the back of your pantry for emergency entertainment situations.
See the catalogue here.
Have you noticed milk price rises? Does it impact your budget? Why not share your thoughts in the comments section below?
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