Milk prices are today expected to fall to around $1.78 for two litres, some 20 cents cheaper than its previous heavily discounted price.

WAFarmers dairy section president, Tony Pratico, is alarmed by the discount – which is only expected to last for the day – because it could mean that milk prices would increase dramatically in the near future should WA need to import milk from the Eastern States to keep up with demand.

"The costs of bringing milk across the Nullarbor are obviously far greater than producing milk in WA and these costs will be passed on to the consumer," Mr Pratico said.

Mr Pratico said there are still many hard-working WA dairy farmers prepared to supply high quality milk, but increased costs must be seen through improved farmgate prices.

"However, if we give an incorrect signal that we can produce milk cheaper, like this move by Progressive Supa IGA, I believe that many farmers would be adversely affected," he said.

Source: North Queensland Register