Coles has launched a new milk fund that aims to help Victorian and NSW dairy farmers affected by the sudden drop in milk prices.
Both Fonterra and Murray Goulburn have dropped the prices they pay Australian farmers for their milk in recent weeks.
The initiative will see Coles establish a new milk brand that will pay 20 cents a litre to an independent fund, according to an ABC Rural report.
The aim of the program is to support around 2,600 dairy farmers who were affected by Murray Goulburn's recent milk price cut.
The money raised will be targeted to the long-term future of the sector, however some farmers face an immediate crisis, according to the report. When Murray Goulburn retrospectively cut the price it was paying farmers, it wiped out two years' profits for some suppliers.
Coles launched a similar initiative to help South Australian farmers in 2012 called SADA Fresh Milks which has raised about $200,000 a year for farmers.
