The dairy industry has blamed cheap milk for devaluing its product and driving down farm-gate prices,with criticism growing as a crippling drought on Australia's east coast sends many dairy farmers out of business.
Drought has also led to soaring grain prices,making it more expensive for farmers to feed their herds on top of costs like water and power.
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In astatement on its website on Tuesday,Aldi said the 10 per cent increase"represents a short-term solution to an industry-wide problem that requires coordinated federal government-led structural reform."
Oliver Bongardt,Managing Director of Buying at Aldi Australia said the decision was reached"in recognition of the significant issues currently impacting the dairy industry and the fact that broader government-led policy reform is unlikely to occur in the short-term."
Coles Group Chief Executive Officer Steven Cain said the company"supports proposals to make Australia’s dairy industry more sustainable,and we are continuing to explore long-term solutions with government and industry stakeholders.
"However we know that many dairy farmers cannot wait for structural reform to be delivered so we are moving to provide relief right now."