THE Norco chairman has come out in support of Coles, saying calls for a boycott of the supermarket are misguided and would only hurt our farmers.

The call came after Kyogle dairy farmer Shane Hickey posted a letter to Woolworth on Facebook, thanking the supermarket chain for supporting a proposed 10 cent milk levy.

He also slammed Coles for its position on the levy.

"Coles are showing that they DO NOT care about dairy farmers by not supporting the levy," Mr Hickey wrote.

Mr Hickey's comments led to many people calling for shoppers to boycott Coles.

But Norco chairman Greg McNamara said those calls were "misguided".

Last week, Norco announced it will increase the base price of milk by five cents a litre, saying its members could not wait for the government to decide whether to introduce a levy.

Mr McNamara said a proposed 10 cent levy, that would be applied to the retail shelf price of milk, was "founded with the best intentions and Norco has pledged its support for the initiative".

"Norco has a great relationship with Coles and we have been proud suppliers of both Norco and Coles brand dairy products for several years," he said.

"The supply agreement between Coles and Norco is an important and valued component to Norco's business and to members as a whole. Coles pays the farmgate price which is set by Norco, plus a processing margin and other manufacturing costs.

"Coles has also supported Norco's decision to pay our farmers an additional 5c per litre for their milk to assist them in coping with the impact of drought.

"Calls for a boycott of Coles are misguided and would only hurt our farmers by reducing sales of Norco products, impacting our ability to pay the extra 5c, and would not address the long term challenges facing the industry."