He added farmers were under growing pressure to hang on in an industry that’s currently facing the perfect storm of drought, low milk prices and a high cost of water.
“Victorian dairy farmers work hard to provide a high-quality product, which is why they’ve fought against the supermarket’s $1-a-litre milk since it was introduced in 2011,” Mr Walsh said.
“Today’s price bump is too little too late for those dairy farmers and their families who have already made the heart-breaking decision to exit the industry, bringing to an end generations of hard-work and dedication.
“Woolworths and other supermarkets need to take responsibility for the long-term damage that iron-fisted marketing gimmicks like this have on markets and the entire industry.”
Woolworths Group chief executive Brad Banducci said the long-term sustainability of the dairy industry was vital for Australia.
‘‘In our consultation with industry bodies, including the Australian Dairy Farmers Association, its state members and NSW Dairy Connect, we’ve heard the outlook will continue to be extremely tough for dairy farmers right across the country,’’ he said.
‘‘This is affecting milk production and farm viability, which is devastating for farmers and the regional communities in which they live. It’s clear something needs to change and we want to play a constructive role in making this happen.
‘‘The Drought Relief Milk payment model has worked on the eastern seaboard and is the most effective way to guarantee price increases end up in the pockets of Australian dairy farmers.
‘‘While we’re realistic this won’t solve broader structural issues, we hope it will help inject much needed confidence into the sector and the regional communities dairy farmers do so much to support.’’
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