Coles has started to distribute the $3.9 million it raised by increasing the prices of its 3-litre own brand milk by 30 cents.

639 farmers will receive just over $6,000 each, with the supermarket saying 99 percent of applicants were successful.

Norco suppliers have benefited most from handout, with 190 members receiving the funds.

Rural reporter Eddie Summerfield speaks with Coles and Norco in today’s National Rural News Close Up Podcast.

Download this podcast here