I see that Coles has started to promote its ‘Farmers Fund’ milk, whereby, $0.20/L is supposed to go back to farmers for this milk. It may only boost the average farm gate price of the milk by less than a 1c/L…but could be near to nothing or 1cL depending on sales volumes.
It is worth noting that their marketing material does not allude to this significant limitation on potential to the potential insignificant boost farm gate price for the milk.
Also, the milk will sell for $0.50 for a 2L bottle more than the store branded $1/L bottles.
But the question has been asked why have the farmers not received the full $0.25/L.
Coles can’t argue that it costs more for the ‘Farmers Fund’ as they already have the payment channels back to the processors to send the collected funds in their direction and ultimately to the dairy farmers. They also can’t argue that the milk is more expensive to produce or store as it is the same cows, logistics and refrigerators used as the $1/L milk…so who get the 20% of the extra margin. Well not the farmers but expect that Coles is making an extra $0.05/L to boost its profits by riding the community sentiment on milk prices and how much the farmer should be paid.
Coles is making at least 10 times more if not 100 times more per 2L bottle of milk than what the farmers will get. This is gouging by Coles.
This is why I would not be buying this milk. If the full $0.25/L was going to the farmers, then it would be something I would seriously consider supporting should it be available to me in a supermarket (whether it is Coles or another supermarket).