THE Victorian Farmers Federation (VFF) says the move by Coles to lift their own brand milk price is welcoming for farmers, and reflects the mounting costs being incurred by producers at the farm gate.

The supermarket giant will increase its three litre bottles by 60 cents to $4.50, while its two litre bottles will rise by 50 cents to $3.10, and its one litre bottle by 25 cents to $1.60.

VFF United Dairyfarmers of Victoria vice president, Mark Billing, said the move would help put value back into the supply chain and is a culmination of a number of factors.

“We’ve got fertiliser costs that have gone through the roof and significant costs around energy and grain that farmers need to feed to our cows,” he said.

 “Farmers can’t continue to fully absorb these costs and that’s part of the reason we’re now seeing retail level prices start to increase.”

 “Many dairy producers are just breaking even in terms of mounting costs. To have milk, we need dairy farmers, and this move helps ensure that.”

 “The retail price of milk has remained stagnant for many years now, so from a farming point of view this change has been a long time coming.”

 Mr Billing added he hoped other supermarket chains would pass on the rise.

 “If this price rise from Coles is followed by other supermarket chains, it will help put sorely needed value back into the supply chain,” he said.