Supermarket Milk Wars: the hard numbers tell a remarkable story

By Milk Maid Marian (www.milkmaidmarian.com)

The most heartening thing about the Australian dairy crisis is the support ordinary Australians have shown for farmers. The remarkable graph above proves what we’ve all seen on supermarket shelves. Real people taking real action.

Is supermarket milk really important to dairy farmers?
To answer this question I asked Dairy Australia how much of the milk that leaves the farm gate ends up in cartons on supermarket shelves. Well, (with apologies to Lara Bingle) that depends on where the bloody hell you are. In Queensland, just about every drop goes to the supermarket. Here in Victoria, about a tenth of our milk ends up in the fridge and another half is turned into other foods like cheese, yoghurt and butter plus ingredients for everything from toothpaste to glue.

So, yes, what happens in the supermarket matters – critically for farmers in Queensland, NSW and WA. It also can’t be ignored in dairy farming powerhouse, Victoria, especially in the light of cheese prices now targeted by Coles to follow milk down, down, down.

The value of milk has fallen - Aussies are drinking less fresh white milk, despite the supermarket discounts

It appears that after an initial lift in demand from consumers in response to discounted milk, consumers have become accustomed to paying the reduced price for fresh white milk, and consumption patterns have since reverted back to pre-discounting levels. Therefore, the implementation of this discount pricing strategy has ultimately failed to lead to a sustainable lift in per capita consumption of fresh white milk.

Full article available at HERE