Retailers have hiked prices for milk with prices rising to $6.50 for a three-litre milk at some retailers. Years of offering home-brand milk at $1 per litre ended in 2019 when Woolworths lifted home-brand milk prices by 10c per litre, promising to give the extra 10c to farmers affected by drought. Coles and Aldi followed suit, lifting retail prices with a promise to pay farmers the difference.

Since then, farmgate prices risen in four years out of five and are reportedly up more than 75% from six years ago. In a statement, Woolworths said it is paying its own brand suppliers more for milk with clear and transparent contracts in place to ensure farmgate prices offered by processors are passed through to the retailer.

Australian Dairy Farmers president Rick Gladigau said some farmers benefitted directly from recent increases in retail prices but cautioned that while farmers are enjoying historically high prices for milk, significant increases in the cost of production are squeezing margins.