Coles Milk Supply Agreement

“Lion Dairy & Drinks is currently pro procured milk in Western Australia to produce a large amount of coles brand white milk,” it was said. Woolworths said he was taking steps to support the industry, while waiting for the federal government to respond to structural reforms advocated by the ACCC, which found that “$1 per litre of milk or reductions in other retail milk prices have had no observable direct influence on farm numbers, production or profitability.” For a delivery period between July 1, 2020 and June 30, 2021. www.australianconsolidatedmilk.com.au/suppliers The current supply contract is between Coles and Norco in south-east Queensland and north NSW, as well as between Coles and Lion in Far North Qld. I think it`s only a matter of time before Coles moves on to a direct delivery contract. It could result that some Lion suppliers will not have a home for their milk from October 1. A company spokesman confirmed that Lion last week began “discussions” with its suppliers, whose delivery contracts end on June 30. Coles restructured its Coles Brand dairy supply model in AV by contracting directly with Australian dairy farmers and replacing the previous model, in which Coles Brand milk sold to WA was purchased through processors who set the price farmers received. But the number of suppliers it retains will largely depend on the number of one-, two- or three-year contracts with Coles to deliver milk directly to the supermarket chain for its clean milk. Lion has acknowledged that from the 1st when a new milk processing and packaging contract for the Coles Group comes into force, there is no need for milk out of the 29 current suppliers. The story What it means to supply supermarkets directly first appeared on Queensland Country Life. Lion Dairy & Drinks has published four basic milk supply contracts for VA dairy farmers, each comprising four seasonal price plans determined by milk content. This section contains a list of dairy processors provided by NSW dairy farmers and links to their milk delivery contracts containing their minimum milk price. It also provides information on the code of conduct for the dairy industry and a reflection for dairy farmers who evaluate milk delivery contracts.

But an imminent change of ownership to China Mengnui Dairy Company Ltd and the significant change in Coles contact – considered the largest dairy contract in VA – followed by last week`s contact calls, has made dairy farmers nervous. Coles offers farmers one-, two- and three-year supply contracts, with the published price structure remaining the same from October 1 to June 30 next year, and then for the next two fiscal years. “If all westaustraliers understood that you don`t have to pay more for something, but you don`t eat anything that wasn`t made here, we`d have half a chance,” said Marc Anderson, Browne`s director of supply chain. An indicative minimum seasonal average for a farmer in the Pinjarra-Busselton area with an exclusive agreement with Lion would be 51.05 cpl, compared to a minimum seasonal average of 46.55 cpl for a farmer in the Albany district with a non-exclusive agreement. The payments follow an ACCC investigation into whether Coles fully passed on to Norco a price increase of 10 cents per litre (cpl) it charged to consumers of Coles-branded fresh milk, as Coles claimed. “We continue to work on this change, but this decision means that from 1 October we will no longer have to conclude as many milk delivery contracts with milk suppliers in Western Australia. Other Woolworth own brand milks are purchased, processed and packaged by Brownes. “As part of a new agreement being considered with Coles, Lion Dairy & Drinks will be in place from October 1, the Western Australia retail coles brand will continue to process the amount of white milk at our Bentley production site in Western Australia,” Lion said. ContextColes has committed to making available to the ACCC an independent audit report confirming that from April 1, 2019 to June 30, 2020, norco paid the 7 full cpl for 2 liters and 3 liters of Coles brand milk, and also committed to cooperate with Norco to verify whether Norco passed it on to farmers.

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