Federal Member for Page Kevin Hogan has welcomed news that Woolworths will effectively cease sales of $1 milk, but says there is still much more to be done.

“The $1 milk has hurt our local dairy farmers. It is good that Woolworths has decided to end it,” he said.

“Selling milk cheaper than water devalues the product and the work farmers put into it.

“All supermarkets should pay a fair price for all dairy – this includes cheese and yoghurt, not just fresh milk, which is a small fraction of the market.

 “The ACCC report into the dairy industry clearly says supermarkets use their market power to drive down how much they pay processors, and processors then use their bargaining power to drive down what they in turn pay farmers.

 “This is one of the reasons why I have called for a Royal Commission into the market power of our big supermarkets.”