The supermarket chain’s home-brand three-litre milk will increase by 30 cents immediately.

Coles also proclaimed it would offer a milk range delivering 10 cents a litre directly back to the men and women on the land.

Dairy Connect CEO Shaughn Morgan said Woolworths had broken the “$1 a litre price syndrome” and was showing real concern for its dairy farmers by diverting part of the retail price for milk via dairy processors.

“It’s a great first step, but there is much more to create fairness all along the supply chain,” he said.

“Dairy Connect now calls on all supermarket groups to follow the lead and make the price initiative permanent and, not only in drought-impacted states, but nationally.

“The move is a temporary measure focusing on drought-affected dairy communities.

“But, we believe the initiative should be national and the price adjustments should be permanent. 

“We also continue to call for all dairy products to be increased in price, allowing for a higher farm-gate price.”

The new Drought Relief range would offer customers additional Woolworths full cream and lite milk at $2.20 for two litres and $3.30 for three litres, with the extra 10 cents per litre to go to dairy farmers in drought areas.

Meanwhile, Minister for Agriculture David Littleproud congratulated Coles on coming to the party to help farmers.

“Aussies can now back our farmers at the supermarket checkout,” he said.

“I rang retailers three weeks ago and asked them to consider a voluntary levy for our farmers and I’m rapt they’ve come to the party. 

“They’ve shown they have a social conscience.

“Now it’s up to consumers to show they want a #fairgoforfarmers by buying this milk. 

“It’s a small investment to keep our farmers on the land producing milk for our nation.

“Ten cents a litre may not sound like much but it’s huge for our farmers, many of whom are losing money every day, or struggling to break even.”