Dairy farmers supply Woolworths directly for Farmers’ Own brand
THE security of a three-year contract helped entice David and Rhonda Tanis to supply milk directly to Woolworths.
THE security of a three-year contract helped entice Carlisle River dairy farmers David and Rhonda Tanis to supply milk directly to Woolworths.
The couple, with farm managers James Horan and Wanita Chamberlain, run one of three Otways dairy farms supplying milk directly to the supermarket giant for its Farmers’ Own brand.
It is the first time Victorian farmers have supplied milk direct to supermarkets. It will be processed at Camperdown Dairy and sold through 240 Victorian Woolworths stores.
Farmers receive a three-year contract including a farmgate price they “are happy with”, according to the couple. Every 12 months, the three-year contract is reviewed.
“It is the security. We were virtually given a three-year contract and we know where we are heading and can plan accordingly,” Rhonda said.
“It is a premium (price) compared to everyone else,” David said.
“It is the security of knowing we can pay our bills and it’s an income we can exist on. We could expand if we wish.”
Managers James and Wanita hope to move from managers to sharefarmers next year.
James said he was pleased another competitor was in the market, and didn’t mind the concept of supplying a supermarket.
David said farmers were responsible in the unlikely event of a milk contamination under the Woolworths agreement, where traditionally milk processors have taken responsibility if this happens, and the Woolworths quality requirements were stricter than their previous processor.
Victoria is the third state to introduce Farmers’ Own milk. It started in the NSW Manning Valley and was recently introduced into Western Australia.
It will be available in supermarkets this week.
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