Dairy Connect supports Woolworths in removing $1 litre milk – an important first step

Woolworths have announced that it will remove $1 a litre fresh milk from national sale from Tuesday, 19 February.  Dairy Connect congratulates the Woolworths Board and team in making this vital first step in restoring confidence in the Australian dairy industry.

Woolworths outlets will begin to sell two and three litre varieties of Woolworths brand fresh milk for $2.20 and $3.30 respectively, with income from the price increases ending up with dairy farmers who supply their nutritious produce via their processors to Woolworths.

Woolworths Group CEO Brad Banducci said the company was hugely appreciative of the support Dairy Connect had lent in shaping the retail giant’s understanding of the evolving dynamics of dairy.

He said this included the success of the retailers Drought Relief Milk range in the eastern states where it had delivered $5.8 million in relief to more than 285 dairy farmers since last September.

“Dairy Connect’s early support for our Drought Relief Milk was very important to its success,” Mr Banducci said

“Our continued dialogue has been very influential in shaping our response to the unfolding challenges in the sector,” he said.

“The company believes the long-term sustainability of our dairy industry - and the regional communities it helps support - is incredibly important for Australia,” Mr Banducci concluded.

Dairy Connect CEO Shaughn Morgan welcomed the positive comments from the big retailer and indicated that it was a team effort to ensure that the ‘drought relief range of milks’ provided much needed support to dairy farmers, via their processor Parmalat, from Woolworths.

“The desire by consumers to show their support for dairy farmers was instrumental in the success of the Woolworths brand of ‘drought relief range of milks’ and Dairy Connect remains eternally grateful to the consumers who continue to support the dairy industry at this time of need,” Mr Morgan said.

“Other retailers must immediately follow the decision of Woolworths and adopt a similar model so as to ensure that the price increase goes directly to their own dairy farmers. Not to do so would be manifestly unfair on dairy farmers who supply their fresh nutritious milk to their processors daily.”

Dairy farmers are continuing to face high energy costs, increasing fodder prices, the ongoing devastating impact of the drought as well as continuing low farmgate prices. 

“Woolworth’s has demonstrated that it is a first-class corporate citizen actively seeking a sustainable future for producers and processors in a price stable and equitable industry environment”, Shaughn concluded.