Woolworths is absorbing some of the cost increases brought about by the Middle East war, while increasing payments to its farmers.
The news comes after the closure of the Strait of Hormuz has skyrocketed oil, diesel, and fertiliser costs, with farmers among the hardest hit communities in Australia.
To help support its farmers, Woolworths – which says it buys around 20 per cent of the country’s fresh produce, and 7 per cent of its beef – has increased its payments for Farmers’ Own milk by 10-cents per litre.
“We know Aussie households are feeling real pressure when it comes to rising costs and fuel prices. We’re committed to doing what we can to buffer customers at the checkout and absorbing some of those extra costs in our supply chains,” a Woolworths spokesperson said.
Coles announced a relief package for its farmers on Monday, which included up to $1 million in one-off payments.
“We also recognise suppliers, Aussie farmers and transport partners are navigating difficult cost increases like the rise in fuel prices, and we are working to find the right path through.” Woolworths added.
The supermarket giant said that this added payment has not been passed on to customers.
