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 a strong cynical backdrop to the launch of Farmers Own milk brand.
This initiative would give Woolies more control over its milk sources and how much farmers are paid.
“We 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 that deliver a higher price at farm gate”. said Woolworths 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