Coles is refusing to follow Woolworths and axe its $1-per-litre milk range, citing cost of living pressures for customers.

Woolworths has stopped selling cut-price milk, saying something has to change to help struggling dairy farmers.

It has bumped up the cost of its Woolworths-branded milk by 10 cents a litre, with the money to go to back to farmers who’ve faced years of drought and low profitability.

But Coles says many customers are struggling with cost of living pressures and it won’t be doing the same.

Instead it will look at other ways to help farmers, including collecting customer donations and matching them dollar for dollar from next week.

It says it has also committed $16 million over the past six months to support the sector, and will liaise with the industry and the Australian Competition and Consumer Commission (ACCC) on future initiatives.

“Coles also knows that many customers in Australia face cost of living pressures and doesn’t want them to be disadvantaged through price increases,” Coles said on Tuesday, a day after Woolworths said it would bump up milk prices. 

“We also note that the ACCC has previously examined the Australian dairy industry and concluded that house brand milk pricing does not negatively impact farm-gate milk prices.

“Coles is seeking a long-term solution that does not disadvantage our customers and supports our dairy farmers.”

-AAP