This was their reply to whether they'd be reducing the price of all milks, not just dairy.
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Good Morning Ms Rogers,
Thank you for your email regarding the recent price reduction of our Coles brand Milk.
Coles have an ongoing commitment to provide our customers with a great range of quality food that costs less. The recent price reduction of our Coles brand 2 and 3 litre milk is just one of the many ways that we are delivering on this commitment.
We hear and understand concerns that price reductions may adversely affect Australian farmers, however, we believe that there is no foundation to these concerns. Coles buys its milk from major dairy processing companies, not directly from dairy farmers. Coles have made the decision to absorb the costs of this price reduction and has not sought any reduced prices from the processors we buy from. In turn, our processors should not need to seek price reductions from the dairy farmers.
Additionally, the farm gate price of milk is set by dairy farmer cooperatives and dairy processors, not retailers. The farm gate price is largely influenced by the international price of milk products. Australia exports about half of its annual milk production and is one of the biggest dairy exporters in the world. To put this in perspective, Coles milk sales represent less than 5% of Australia’s annual dairy production.
Coles is committed to maintaining lower milk prices for our customers, however, if there are genuine cost pressures coming through the milk supply chain, Coles has and will, continue to review them with our dairy suppliers.
Once again, thank you for taking the time to contact us. We do hope the above information has helped alleviate your concerns.
Yours sincerely
Kate Lyons
Customer Care Consultant
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Still no reply to my follow up....
