Woolworths to extend generic milk aid into 2021 on opening farmgate price day
Woolworths have moved to extend its dairy farmer support scheme to cover the coming financial year with processors set to reveal their opening prices today.
WOOLWORTHS will extend its existing dairy farmer assistance scheme on two and three-litre generic brand milk varieties until June 2021.
Supermarket management announced today that the 10 cent per litre levy would cover the forthcoming financial year, heaping pressure on Aldi and Coles to match the commitment.
Woolworths food director Paul Harker also announced that the retailer would establish a $5 million fund to provide infrastructure and technology grants for dairy farmers.
It comes as Australia’s major milk processors are set to reveal opening farmgate prices for the first time in unison today, with new rules under the dairy mandatory code of conduct coming into force.
“Our levy has provided much-needed relief to dairy farmers and we’re grateful for our customers’ support of the program,” Mr Harker said.
“While conditions have improved and farmgate prices have gone up since we started the levy in 2018, we’re extending payments to provide certainty while dairy farmers and processors find their feet under the new mandatory code.
“This is set to return tens of millions to dairy farmers over the next 12 months above and beyond the farmgate price they’re paid by their processors.
“To build on our existing support, we’re also working to establish a dairy fund to offer financial grants for dairy farmers to invest in new infrastructure or technology to improve profitability.”
Woolworths says its 10-cent scheme has contributed around $50m to dairy farmers since the initiative was introduced in 2018.
Based on current volumes, management says the support payments were expected to contribute an extra $30 million to dairy farmers over the next 12 months.
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