Friday, 17 April 2015 15:13

Oz supermarket milk label just ‘smoke and mirrors’

Written by 
Woolworths has launched its milk label in Queensland, irking local dairy farmers. Woolworths has launched its milk label in Queensland, irking local dairy farmers.

Queensland farmers are deriding as “smoke and mirrors” the claims made by supermarket chain Woolworths.

The company claims that its Farmers Own milk brand, now on sale in 194 stores in the south of the state, are benefiting farmers and consumers.

The milk will be sourced directly from two farms in the Sunshine Coast hinterland.

It follows the launch of the Farmers’ Own brand in NSW, with milk from Manning Valley dairy farmers; in Western Australia, sourced from Margaret River; and in Victoria, sourced from the Otways region.

Woolworths head of trade - chilled, Paul Turner, says the product has “proven to be great for farmers and for Woolworths, but most importantly customers have shown they love it”.

“Local varieties [of Farmers’ Own] in other states have been extremely popular and we know it’ll be just as popular here in southern Queensland.

“At this stage, the milk will be available as far north as Rockhampton. We’re looking for a local farmer and processor in Far North Queensland to serve our customers in that area. The whole idea of Farmers’ Own milk is to support local farmers so we are working hard to cover the whole state.”

Queensland dairy farmer John Cochrane chairs the Premium Milk group which collectively bargains on behalf of dairy farmers to supply Parmalat. 

“We approached Woolworths and would have liked them to have taken milk from all the Premium group and given some sort of margin to 200 people,” he told ABC Radio.

“We all understand this is a smoke and mirrors thing. The real problem is the price of milk. On January 26, 2011, milk went from A$1.28/L to $1, not because of oversupply or poor quality or customer rejection, but because they could do it. 

“Now, A28 cents/L [times] 2 billion L of milk in Australia [took] A$560 million out of the industry in one day.”

He said Woolworths uses the “divide and conquer rule” but this does not benefit the
dairy industry in any state.

Dairy farmer Lucas Kennedy, Conondale, one of the two Queensland farmers to supply the Farmers’ Own brand in Queensland, said the relationship “gives farmers end-to-end transparency from shed to shelf, a long term contract and a closer relationship with their customers”.

Kennedy told ABC Radio the deal gave him more negotiating power when setting a price, which is locked in for three years. He could not disclose how much he is paid per litre, but said the deal was better than those offered by the big processors.

More like this

Trials show promise for regenerative farming

Regenerative farming trials in Gisborne, in partnership with Woolworths, LeaderBrand, and Plant & Food Research, are uncovering promising opportunities for sustainable vegetable farming in New Zealand.

Locally grown fruits, veg in full supply

One of the country’s two largest supermarket chains is reporting that for the first time since the disruption of Covid, they have largely full supply on almost all fruit and vegetables grown locally.

Featured

Contract milkers hit hard by drought crisis

Many contract milkers in badly drought affected regions around the country are coming under severe financial stress and farm owners are being urged to help them through a bad patch until the start of the new season.

National

Lame stories from a country vet

Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s…

Machinery & Products

Amazone extends hoe range

With many European manufacturers releasing mechanical weeding systems to counter the backlash around the use and possible banning of agrochemicals,…

Gong for NH dealers

New Holland dealers from around Australia and New Zealand came together last month for the Dealer of the Year Awards,…

A true Kiwi ingenuity

The King Cobra raingun continues to have a huge following in the New Zealand market and is also exported to…

» Latest Print Issues Online

Milking It

Greenpeace a charity?

OPINION: Should Greenpeace be stripped of their charitable status? Farmers say yes.

Synlait's back

OPINION: After years of financial turmoil, Canterbury milk processor Synlait is now back in business.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter