Agriculture Minister David Littleproud has joined the growing chorus of critics of Coles 10c/litre.
Lion chief executive Stuart Irvine said the sale of LDD was the best option to set both Lion and LDD up for the future.
A 30c price increase on Coles' 3L Own Brand milk will be donated to the NFF’s 2018 Drought Relief Fund.
Lion will pass back a 10c wholesale price increase on its Dairy Farmers and Pura white milk products to drought affected farmers.
Queensland dairy farmers say Woolworths' and Coles' 10c/litre drought levy is a start but it is nowhere near enough.
Both Woolworths and Coles will introduce a 10c/litre levy to support drought affected dairy farmers.
Agriculture Minister David Littleproud welcomes Australian Dairy Farmers new support for a mandatory code of conduct for the dairy industry