Coles in talks on milk price help

AUSTRALIA - Supermarket giant Coles is working with farmers on a plan to put an extra 2.5-3 cents per litre of milk into the pockets of Australia's dairy farmers by increasing or extending the national drinking milk levy.

28 December 2006

1 minute read

Oceania

The Australian Milk Producers Association with Coles have proposed that dairy farmers receive a one-off payment of $25,000-$30,000 per million litres of milk produced to help them through the drought.

AMPA director at Simpson Alex McKenzie said it was proposed that the 11 cent a litre Dairy Adjustment Levy paid by consumers be increased or extended one year after its estimated expiry in 2009 to fund the initiative.

The levy was originally designed to fund the $1.8 billion dairy adjustment package implemented in 2000.

The new levy extension proposal was developed initially to help drought-affected dairy farmers, Mr McKenzie said. ``But in the long term we hope it would help to get some stability into the industry and stop people leaving. If we get this up we will looking for longer term solutions for the industry.''

Source: The Standard