A leaked email reported by the Financial Review suggests Woolworth’s is considering buying milk directly from farmers,using existing milk companies as toll processors and using a new brand to appeal to consumers who want to support farmers.
The leak also suggested the company’s own market research warns of â€˜strong cynical backdropâ€™ to the launch of â€˜Farmers Ownâ€™ milk brand.
This initiative would give Woolies more control over its milk sources and how much farmers are paid.
â€œWe have always believed that the drop to $1 a litre is not sustainable for the dairy industry and not good for dairy farmers.
We are looking at trialing alternatively sourced milk products direct from farmers thatr deliver a higher price at farm gate”. said Woolworthsâ€™ director of corporate and public affairs, Andrew Hall. Before the plan can go ahead,however,authorization must be secured from the ACCC.
Source: Dairy Globe