The Meeting Place

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.

Is Woolworths doing enough to support Australian farmers?

8 comments

Why the hell don't they just pay the farmers a fair price for their milk in the first place.  I'de happy to pay an extra 50 cents to a dollar for a bottle of milk.

 

ex PS

I do not mind you donating money to anybody you please

However I do object to large companies forcing customers to give a donation.

.. especially when they put up the price by 25 cents to give the farmers 10 cents and then have thehide to say .... look how we look after the farmer.

That’s what I thought, exPS.  IMO that sounds dodgy and I can’t understand anyone agreeing to it by buying Woolies milk.

ex PS I would not be happy paying extra, Why is it that the rural industries self employed expect tax payer or forced subsidies, all other self employed dont get or expect to be subsidised, all other industries would welcome the rural susidies. is being a negative tax payer not enough.

80 Plus this would not be necessary if Woolies paid the farmers a fair price in the beginning in stead of screwing the farmers and middlemen to try and get a one up on Coles.

I use homebrand  long life milk ...Woolworths and Coles have just put up the price by 25 cents.

I feel sure that did not go to the farmers ?

I refuse to use Woolworth and Coles milk because I’m sure they don’t help the farmers.

So where do the profits go when you buy a bottle of milk ???

.... the chances are the profits are being sent overseas — because they are certainly not going into the pockets of Australian farmers.

the majority  of the large milk brands are owned by overseas companies, sending profits to Italy, France and Japan and China.

Woolworths’ own milk, as well as Pauls and Farmhouse Gold, is supplied by Italian company Parmalat, which is owned by France’s Lactalis.

I pay more, but then I don't use much milk, so not a strain on the budget. because I buy the named brands of milk - Norco & Paul's mostly in my area.  I always try to buy the named brands of milk, custard, cream etc. - cost more but hopefully keeps the farmer viable, so that they still exist in the future.  The supermarkets wield too much power, and send a lot of producers to the wall.

Yes SUZE, I to buy Long Life Milk, I find it very convenient and you never run out. A 25% increase over night. I don't agree with companies putting up the price of products and tell customers their donating to whoever. If I wish to donate to various people/charities etc. I will of my own accord. Nobody should be forced/blackmailed. What do they do at tax time, I'm sure their claiming it as a deduction. Robbers, and where the Bunnies. Cheers Jacka.

I'm reasonably lucky here to be able to buy Norco milk in Woolies ...

Established in Byron Bay, New South Wales in 1895 Norco is a 100% Australian farmer owned dairy co-operative with 326 active members on 214 dairy farms in northern New South Wales and south east Queensland. Annual milk production is 195 million litres.

https://www.norco.com.au/

Beautiful milk.

RnR same reason I always buy Devondale, a farmers co-operative, even if it is slightly more expensive than other brands. I am in such a fortunate financial position I can afford to be discriminating, I understand there are others who are not so fortunate.

RnR same reason I always buy Devondale, a farmers co-operative, even if it is slightly more expensive than other brands. I am in such a fortunate financial position I can afford to be discriminating, I understand there are others who are not so fortunate.

I buy Devondale milk also but it is sold by Woolworths.

I would be happy to pay more for milk providng I can feel confident the farmers benefit.

Devondale is owned by a Canadian comany

Q) When consumers buy Devondale milk, how much money goes back to the farmer here in Australia?

A) Devondale Murray Goulburn is Australia’s leading dairy foods company. It is a co-operative 100% controlled by Australian dairy farmers, which means that the farmers who make the milk control the company that sells it.

From Canstar

DEVONDALE ® IS A REGISTERED TRADEMARK OWNED OR USED BY SAPUTO DAIRY AUSTRALIA PTY LTD.
https://www.devondale.com.au/

Saputo Dairy Australia Pty Ltd
https://www.saputodairyaustralia.com.au/en/our-company
We are part of Saputo Inc., one of the top ten dairy processors in the world. Saputo Inc. is publically listed on the Toronto Stock Exchange under the symbol “SAP”.

Saputo
https://www.saputo.com/en

Sophie on that Q&A from Canstar it notes ...

It should be noted that this interview was conducted in 2016, with Devondale now operating under Saputo’s Dairy Division (Australia).

https://www.canstarblue.com.au/groceries/brands/devondale-milk/

I know RnR I had not finished writing when my post mysteriously posted itself!  Then I completely forgot about it. I was going to continue by saying...loyalty to a co-op is one thing but getting through a crisis situation which Murray Goulburn was undergoing is another. They had to sell but the problem was to whom? Lots put their hand up but Saputo paid the highest.

Many may not know, but they were seriously considering an offer from the Chinese, so glad they did not accept but went with Saputo. I have bought Devondale longlife milk for years.

PS: In order to stay afloat, Norco sells its milk to many overseas markets, including China.

 

I buy Devondale milk also but it is sold by Woolworths.

I would be happy to pay more for milk providng I can feel confident the farmers benefit.

 

I agree with you not dead yet

"Devondale is owned by a Canadian company"

when will we learn not to sell our land??

Yes  the profits go overseas

 

8 comments