The National Farmers Federation says consumers must not forget the impact of price wars on farmers, as supermarket milk prices drop.
Inflation figures for the March quarter show that flooding and Cyclone Yasi pushed up fruit and vegetable prices by 15 per cent.
But the ABS figures also reveal a 6 per cent fall in milk prices, due to discounting.
Treasurer Wayne Swan has welcomed the savings for consumers.
"I certainly support vigorous price competition at the checkout."
National Farmers Federation president Jock Laurie says consumers needs to realise the damage being done to farmers.
"There certainly will be an impact if you keep driving prices down at the bottom end."
Mr Swan does say he wants to keep an eye on what the price cuts mean at the farm gate.
ABC Rural |
Print 
Enquire 
Email Link
