The cost of milk is going up.

Coles is raising the retail price of Coles brand fresh and UHT products — blaming sourcing, transportation and packaging costs.

WA Farmers Federation dairy president Ian Noakes told Gareth Parker there was a shortage of milk production in WA and something had to give.

“We’ve sort of got back to the same price for milk as what it was 11 years ago… milk production three years ago was nearly 400 million litres and this year will probably be 330 million litres,” he said.

Press PLAY below to hear what’s driving the price hikes