What has been dubbed as a ‘dairy crisis’ started in Australia in April when milk companies, including Murray Goulburn and Fonterra, suddenly and retrospectively slashed the price they paid dairy farmers for their milk.
The cuts meant farmers were receiving prices below the cost of production, with some suppliers suddenly owing processes more than $100,000.
Despite the companies saying it was the fault of the world market, outraged consumers laid the blame on supermarkets for their controversial $1 a litre private label milk strategy, which shoppers see as hurting farmers.
Consumer sales figures show the share of sales of $1 per litre milk in supermarkets has fallen from a 65-35 per cent split between private label and branded milk to a 50-50 per cent split.
Charlie McElhone from Dairy Australia believes the trend has stabilised and looks to be continuing.
«There has been about a 15 per cent reduction of private label sales in favour of the company branded product,» he said.
«Similarly we have seen company branded sales share increase considerably at the same time.»
Mr McElhone said the change in consumer behaviour reflects additional work done by Dairy Australia that showed Australians aren’t happy with supermarket milk discounting.
«We recently surveyed about 100 females, above the age of 18 about their consumption habits.
«We know from that, that about 70 per cent of those surveyed agreed milk should cost more than $1 a litre and that it should cost more than a bottle of water.»
Dairy farmers have said they are thankful for the consumer support from the public.
According to Dairy Australia, Australians spend more than $4.5 billion buying 2.4 billion litres of drinking milk, including fresh, UHT and flavoured milk, every year.
Murray Goulburn supplier Di Bowles, from Mead in northern Victoria, said she was excited by the sales news and hoped it would continue.
«I actually think it is really good and I actually feel really supported.
«I really like that people ring and ask me what milk to buy, they ask me, ‘is this your milk?’
«I think some people have changed and will continue to change and stay with that change but I think that we become complacent sometimes and just forget.»
Source: ABC
Link: http://www.abc.net.au/news/2016-08-12/private-vs-branded-milk/7723408