Harvey Fresh plugs Coles milk gap in WA

Posted by AFN Staff Writers on 1st August 2011

Harvey Fresh has been awarded the contract to supply Coles brand milk in Western Australia for the next three years.

Harvey Fresh, a privately-owned manufacturer of freshly squeezed fruit juices, dairy products and wine based in Western Australia, will begin supplying Coles in October 2011.

As a result of the Coles’ contract, Harvey Fresh will establish a standard farmgate price for all Harvey Fresh suppliers. This will also increase the farmgate price paid to 26 suppliers who previously supplied milk to Challenge Dairy, the dairy co-operative that went into voluntary administration in October 2010.

Harvey Fresh will also look to expand its supplier base to meet the new demand arising from the new Coles contract.

Coles merchandise director, John Durkan, said the new Harvey Fresh arrangements with Coles would build a more sustainable dairy industry in Western Australia.

“This re-distribution of our dairy business in Western Australia means that more local processors and dairy farmers will benefit from partnerships with Coles,” said Durkan.

“We believe that these contracts will build long-term sustainable relationships with dairy processors and farmers in Western Australia.

“Harvey Fresh has advised us that as a result of this new partnership with Coles, they will be able to expand their production facilities and invest in new equipment.”

“[The agreement] provides volume and certainty for Harvey Fresh and dairy farmers suppliers and provides a platform to pursue new market opportunities” said Kevin Sorgiovanni, Harvey Fresh Marketing and Sales Director.

“The increase in the farmgate price paid to former Challenge suppliers is a direct result of being awarded this Coles contract; [it] fulfils our desire to achieve a single milk price schedule for all our suppliers and was an important component in our discussions with Coles.”

Brownes Dairy, Coles’ former private label milk supplier that was sold by Fonterra to private equity firm Archer Capital in October 2010, will continue to supply Coles with Brownes brand milk.