Victorian dairy giant to deal direct with Coles | My Machinery
CASE Agriculture
Victorian dairy giant to deal direct with Coles

Victorian dairy farmer co-operative Murray Goulburn has cut a deal to deliver fresh milk direct to Coles supermarket shelves. MG announced it had struck a 10-year deal today, to process and supply Coles’ house-branded milk from July 1, next year. As part of the deal MG will spend $120 million on two factories in Melbourne and Sydney to supply the supermarket giant’s stores. MG has already notified its 2480 farmer supplier-shareholders that the Coles contract locks in a premium that will deliver additional profits from July 2014. As a co-operative MG is built on maximising its return to farmer shareholders. “Dealing direct locks in a premium for our milk that dairy farmers desperately need,” United Dairyfarmers of Victoria president Kerry Callow said. “It’s also great to hear Coles has agreed to re-stock its shelves with Devondale-branded fresh milk and cheeses. “From June this year, consumers will once again see these iconic Devondale cheese brands back on Coles’ shelves, after a nine-year absence.” Ms Callow said it was heartening to see that Coles had listened to the UDV and Australian Dairy Farmers, who have campaigned for more than two years to try and get farmers a better deal in the fresh milk market. “We’ve heard lots of arguments from processors and Coles claiming they’re not paying farmers any less,” Ms Callow said. “Dealing direct means our nation’s largest dairy farmer co-operative finally gets a clear view of what Coles is paying – true transparency.”

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