Woolworths to extend milk levy for 12 months
Woolworths will extend its existing dairy contribution payments on two and three litre fresh own brand milk varieties until June 2021.
The 10 cent per litre levy has contributed around $50m to dairy farmers since Woolworths first introduced the initiative in 2018. Based on current volumes, these support payments are expected to contribute an extra $30m to dairy farmers over the next 12 months.
The move to extend the support will provide certainty to more than 450 dairy farmers supplying milk used in the production of Woolworths branded milk as the Federal Government’s Mandatory Code of Conduct comes into full effect and drives change in the industry.
Woolworths will also establish a $5m fund to provide infrastructure and technology grants to dairy farmers to help improve on-farm efficiency and profitability over the next three years.
The Federal Government’s Mandatory Code of Conduct was one of the ACCC’s key recommendations following its inquiry into the dairy industry in 2018.
It has been introduced to address what the ACCC determined was an imbalance in bargaining power between dairy processors and farmers.
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