New Coles Dairy Contracts To Use More WA Milk
AUSTRALIA - The Western Australian Farmers Federation (WAFarmers) welcomes the announcement from Coles that it will be sourcing additional dairy products from Western Australian businesses.
28 October 2011
1 minute read
Coles will source an additional 7.5 million litres of milk from Western Australian dairy
farmers for its private label cream, sour cream, yoghurt and custard.
WAFarmers Dairy Section President, Peter Evans, said the announcement was a
positive step by Coles to repair its relationship with Western Australian dairy farmers.
“Since Coles’ decision earlier in the year to reduce the price of their private label
milk to $1 per litre, effectively removing $25.2 million from the Western Australian
dairy supply chain, producers have been under pressure,” Mr Evans said.
“Coles’ $1 per litre milk strategy is still a major issue, however if these new contracts
result in additional product sales rather than a shift away from branded product to
private label, then it will be a positive result for farmers."
“While Western Australian farmers have not accepted Coles’ claims that they are
absorbing the costs of their heavy milk discounting, this announcement may help to
lift Coles’ standing amongst farmers,” he said.
“These new contracts will hopefully give farmers a reasonable price for their
product,” Mr Evans concluded.
WAFarmers will continue to monitor the price of Coles’ private label dairy products
to ensure money remains in the Western Australian dairy supply chain.
TheCattleSite News Desk
