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The Guardian - AU

National

Luca Ittimani

Coles adds 20c to the price of milk as war in the Middle East pushes up Australian grocery costs

Coles United States the Middle East Michael Hampson Michael Harvey Norco Woolworths

A man takes a bottle of milk from the shelf at a supermarket — Coles has told its dairy farmers it will temporarily pay an extra 5c a litre on top of their farm-gate price and make one-off relief payments to a combined value of $1m. Photograph: SOPA Images/LightRocket/Getty Images

Coles has increased home-brand milk prices by up to 20c a litre, with Woolworths set to follow as war in the Middle East starts to hit Australian grocery costs.

The price rise will support the company’s bottom line against pressure from higher fuel and operating costs, while some of the revenue will be temporarily passed on to dairy farmers.

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