08/02/2011 - 10:36

WAFarmers launches milk campaign

08/02/2011 - 10:36

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The Western Australian Farmers Federation has urged consumers to buy branded milk, butter and cream products in a campaign it says is vital to support the local dairy industry.

WAFarmers launches milk campaign

The Western Australian Farmers Federation has urged consumers to buy branded milk, butter and cream products in a campaign it says is vital to support the local dairy industry.

The move comes in response to the dairy price war sparked on Australia Day by Coles, which cut the price of a two litre bottle of milk to $2.

Coles also made price cuts to its butter and cream products on February 3.

A study conducted by Australian Dairy Farmers estimates the slashed milk price alone would cost Coles more than $30 million a year, but Coles has maintained that it would fully absorb the price reduction.

WAFarmers dairy section president Peter Evans said he was sceptical that Coles would absorb the extra cost, and said it was inevitable dairy farmers or consumers would pay the price.

"Western Australians need to recognise the importance of a viable local dairy industry and support WA farmers and processors through the purchase of branded milk products," Mr Evans said.

"Sometimes deals really are too good to be true, and in this case, the low purchase price of milk and dairy products may have hidden costs and serious repercussions for local industry and future supply of fresh milk."

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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