Extract from The Guardian
So you have seen the milking cows going to the abattoir and seen the
footage of the dairy farmers walking off the land. There you are in the
supermarket aisle, in front of the milk fridge. What to buy?
Alex Robertson, a dairy farmer and spokesman for Farmer Power, says steer clear of the $1 milk. “At the end of the day, it’s a signal to the supermarket that we don’t want their plain-label dollar milk impacting the price.”
The Victorian dairy farmer Marian Macdonald has the same advice, writing on her blog: “Every time you reach into the supermarket fridge and choose branded over unbranded, I say a little thank you.”
“If milk was $100 would dairy farmers be going broke? If its a bigger pie, there’s more to share.”
But a new analysis by the consumer group Choice has found that consumers have embraced the boycott of $1-a-litre milk, spending an additional $113.7m on branded milk.
Since the boycott started in May – after processors imposed a price cut on dairy farmers – sales of $1-a-litre private-label milk by big supermarkets have dropped dramatically.
Choice says sales of private-label milk have dropped in that time from 63.3% of sales by volume to just 50%. “Given the average retail price of branded milk is $1.92 per litre, 90% higher than private-label milk ($1.01 per litre), processors are set for a serious windfall,” said Choice’s Tom Godfrey.
But Choice is concerned that the milk processors will get the windfall rather than the dairy farmers. “While consumers have poured so much into branded milk products, processors like Murray Goulburn, Fonterra, Lion and Parmalat have offered no guarantee that they will pass on the windfall to farmers,” Godfrey said.
Choice has called on milk processors to confirm whether they are passing on any extra funds to farmers, writing to all milk processors. “Consumers are making decisions based on an assumption that they are helping Australian farmers,” Godfrey said. “We want the big brands to be honest to help consumers make informed decisions in the supermarket.
“Many people are buying more expensive milk to support farmers. We want milk processors to tell us where the additional money is going so that consumers who care about farmers can shop with confidence.”
A spokesman for Murray Goulburn said the cooperative’s farmers were benefiting directly from the increased sales.
“As Australia’s largest 100% farmer-controlled dairy cooperative, MG does not retain earnings and passes on profits to its farmer-suppliers via our farmgate milk price,” the spokesman said. “A small portion of MG’s profits (3.5%) are also distributed as dividends to shareholders and unitholders, 66% of whom are also MG suppliers.”
Alex Robertson, a dairy farmer and spokesman for Farmer Power, says steer clear of the $1 milk. “At the end of the day, it’s a signal to the supermarket that we don’t want their plain-label dollar milk impacting the price.”
The Victorian dairy farmer Marian Macdonald has the same advice, writing on her blog: “Every time you reach into the supermarket fridge and choose branded over unbranded, I say a little thank you.”
“If milk was $100 would dairy farmers be going broke? If its a bigger pie, there’s more to share.”
But a new analysis by the consumer group Choice has found that consumers have embraced the boycott of $1-a-litre milk, spending an additional $113.7m on branded milk.
Since the boycott started in May – after processors imposed a price cut on dairy farmers – sales of $1-a-litre private-label milk by big supermarkets have dropped dramatically.
Choice says sales of private-label milk have dropped in that time from 63.3% of sales by volume to just 50%. “Given the average retail price of branded milk is $1.92 per litre, 90% higher than private-label milk ($1.01 per litre), processors are set for a serious windfall,” said Choice’s Tom Godfrey.
But Choice is concerned that the milk processors will get the windfall rather than the dairy farmers. “While consumers have poured so much into branded milk products, processors like Murray Goulburn, Fonterra, Lion and Parmalat have offered no guarantee that they will pass on the windfall to farmers,” Godfrey said.
Choice has called on milk processors to confirm whether they are passing on any extra funds to farmers, writing to all milk processors. “Consumers are making decisions based on an assumption that they are helping Australian farmers,” Godfrey said. “We want the big brands to be honest to help consumers make informed decisions in the supermarket.
“Many people are buying more expensive milk to support farmers. We want milk processors to tell us where the additional money is going so that consumers who care about farmers can shop with confidence.”
A spokesman for Murray Goulburn said the cooperative’s farmers were benefiting directly from the increased sales.
“As Australia’s largest 100% farmer-controlled dairy cooperative, MG does not retain earnings and passes on profits to its farmer-suppliers via our farmgate milk price,” the spokesman said. “A small portion of MG’s profits (3.5%) are also distributed as dividends to shareholders and unitholders, 66% of whom are also MG suppliers.”
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