Dairy Australia data shows that dollar milk accounts for over half the milk bought by Australians.
John Droppert, from Dairy Australia, said $1 milk was changing the type of dairy consumers were buying.
«The move by consumers is effectively away from modified milks, which is another name for reduced fat and no fat milk, towards full cream milk,» he said.
«It’s got a lot to do with discounting.
«The biggest discounts tend to be towards the full cream, private label end of the spectrum.
«That influences people’s choices to some extent as well.»
Mr Droppert also believed better nutritional information had contributed the move by consumers away from skim milk and back to full cream.
The growth of private label products is pushing down the average price of milk. The average price Australians pay for a litre of milk is now $1.55.
Source: ABC