Fonterra Milk Selected for Australian Local Partnership04 April 2014
AUSTRALIA – Dairying in Victoria could be given a sure footing by a ten year milk partnership between Fonterra and Woolworths, farmers are being told.
Fonterra Australia has been confirmed as the supplier for Woolworths Own Brand milk in the state of Victoria for the next ten years.
The proposed deal, confirmed this week, will see Fonterra investing over A$30 million in a state-of-the-art milk processing site at its existing Cobden facility in the south west of the state.
Fonterra have assured the move is great for farmers and also for the dairy sector in general, with 30 jobs being created at Cobden.
Fonterra Australia managing director Judith Swales said: “The proposed arrangement will provide certainty for dairy farmers so they can invest on farm and grow their milk production.
“Australia is our second largest milk pool outside of NZ, so we take a long-term view and aim to deliver profitability, growth and sustainability in the Australian dairy industry.”
For Woolworths boss Tjeerd Jegen, the ten year time frame should help farmers plan, while the Victoria partnership promotes locally sources milk.
“We want farmers and Fonterra to provide quality milk for our customers,” said Mr Jegen. “Fonterra has told us that with the certainty of a long-term contract they and their farmers can invest and innovate.”
“We don’t want to see milk shipped long distances which only adds cost and increases the time between the farm and the supermarket shelf. These new contracts mean local farmers will supply Victorian milk to Victorian families,” he said.
He said the Cobden site will bring new processing equipment which will see fresher milk reaching the stores.
He added: “We hope our customers will enjoy the difference.”
TheCattleSite News Desk