Coles is introducing a $1 million relief package for farmers in its supply chain to help combat rapidly rising costs, with another dairy cooperative confirming similar plans.
The support follows the closure of the Strait of Hormuz in the ongoing US-Iran war, which has sharply increased oil prices. For farmers, this has led to skyrocketing prices of both diesel and fertiliser.
In a letter to farmers, a Coles spokesperson announced the relief: “We know rising cost pressures are affecting many Australian farmers and suppliers who are navigating higher input expenses such as fuel, fertiliser, and packaging.
“To help our dairy farmers manage rising costs, we are committing an additional temporary payment of approximately 5 cents per litre to direct-sourcing farmers, on top of our advertised, competitive farmgate price.”
Norco, Australia’s oldest and last completely farmer-owned dairy cooperative, also announced a five-cent per litre increase to its farmgate milk price from May 2026, which it said would deliver an additional $1 million per month to farmers.
Coles added that its own $1 million in relief for direct-sourcing farmers will be delivered by one-off payments.
“We’re proud to support Australian farmers by investing in the long-term sustainability of the industry,” Coles said.
