Coles (ASX:COL) raised the shelf price of its private-label milk range, citing a volatile global landscape that has sent operational costs for dairy farmers and logistics networks soaring.
The standard 1-litre carton has shifted from $1.65 to $1.85, while larger formats have seen comparable jumps: the 2-litre bottle now retails for $3.55 and the 3-litre variety for $5.15.
The retailer attributed the adjustment to a "perfect storm" of supply chain disruptions.
Ongoing conflict in the Middle East has placed immense pressure on global fuel markets, subsequently driving up the cost of transport, packaging materials, and general logistics.
A Coles spokesperson emphasised that the move is a necessary step to mitigate these surging expenses, noting that the company is passing on costs that have already been incurred throughout the dairy supply chain.
Beyond the standard farmgate price, Coles confirmed that an additional payment will be funnelled directly to its sourcing farmers.
This follows a temporary 5-cent-per-litre increase introduced last week to bolster farm-level income.
Furthermore, over 100 dairy farmers are set to receive support this week via a $1 million relief fund.
The financial package is being distributed based on individual milk volumes to help primary producers weather the current economic climate, ensuring the long-term viability of the local dairy industry amidst tightening margins.
At the time of reporting, Coles’ share price was $23.08.