Woolies shakes up milk contracts

Posted by Nicole Eckersley on 9th June 2010

Woolworths has shaken up its milk supply, with a decision to award its own-label contracts to more than one supplier.

The retailer today (8 June) confirmed that it had chosen to source milk from Parmalat and Murray Goulburn and not just National Foods, which had been its sole supplier of own-label milk since 2002.

A spokesman for Woolworths said the retailer had awarded its contract for Queensland to Italian dairy giant Parmalat.

Murray Goulburn will now serve a clutch of stores in the ACT and in parts of New South Wales.

Last month, a report by the Australian Senate slammed the country’s dairy sector claimed the power of Woolworths and rival retailer Coles, as well as a handful of processors, left farmers at a competitive disadvantage.

However, the Woolworths spokesman refused to accept a link between the report and the retailer’s decision to broaden its supply pool.

“We treat that as a separate case. We’re very supportive of the dairy industry,” the spokesman told just-food. “From our point of view, it’s always a positive thing to work with a number of suppliers.”

Woolworths’ own brands include Home Brand, Select, Naytura, Woolworths Organic, Woolworths Fresh, Freefrom and Macro.

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