National Foods may face another battle in Tasmania

Posted by Editorial on 20th January 2010

National Foods is likely to come under further pressure in Tasmania with milk distributors in the state likely to pursue a PR campaign designed to win back lost supply contracts.

The dairy firm has only just overcome a battle with farmers that threatened their reputation in the region and now may face more problems after electing to go with transport company SRT Logistics for their deliveries to Coles and Woolworths at the expense of around 30 independent distributors.

Greg Marriott from the Amalgamated Milk Vendors Association said the news was unsettling for the sector.

“I’m hopeful that with what’s happened with the dairy farmers that National Foods will sit down with the distributors and give us a fair hearing and meet with us honestly and openly,” he told the ABC.

“Originally they told us that they would give us a chance to tender, but they didn’t give us a chance to tender, we were just given the ultimatum that we were losing the business.

“There will be guys that will lose quite a bit of business and maybe even their livelihoods, so obviously they will go to the media, there’s no doubt about it.”