Coles and Aldi supermarkets have announced they will cease selling milk at 1 dollar a litre, increasing the price by 10 per cent and paying this increase directly to farmers.
The change comes hours after farmers rallied at Coles Coorparoo, and will temporarily settle a price war which began in 2011, when Coles first announced their dollar-a-litre milk.
The increased price of water, power and grain has sent many dairy farmers out of business, leading supermarkets to make a change Aldi calls “a short-term solution to an industry-wide problem”.