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April 1, 2019 >

LDD welcomes supermarket Milk price increase

By Kathy Karabatsas, Managing Director, Lion Dairy & Drinks

Lion Dairy & Drinks welcomes the move by Woolworths, ALDI and Coles to increase the price of their respective Retailer Own Brand (ROB) 2L and 3L fresh white milk products by 10 cents per litre, it is something that Lion Dairy & Drinks has consistently advocated for alongside many of our milk suppliers and farmer organisations.

Where we have any Woolworths, ALDI or Coles ROB fresh white milk contracts we will ensure that the full 10 cents per litre on the 2L and 3L volume sold is passed through to the dairy farms supplying Lion Dairy & Drinks in the relevant state.

Woolworths:  We have already put in place a mechanism for ensuring the full 10 cents per litre on the 2L and 3L volume sold is passed through to the dairy farms supplying Lion Dairy & Drinks in Tasmania where we have the contract and for our Far North Queensland suppliers where we contract pack the Parmalat Woolworths ROB contract.

Coles: We are working with Coles to understand their process. Once this is known, we will determine the best way to pass through 100% of the additional funds from the 10 cents per litre increase on 2L and 3L Coles fresh white milk sold to the dairy farms supplying us in the states/regions where we have the contracts – Western Australia, South Australia, Tasmania and Far North Queensland. Once this is known, we will communicate it with our farmers.

ALDI: We are working with Aldi to finalise the best way to pass through 100% of the additional funds from the 10 cents per litre increase on 2L and 3L ALDI Farmdale fresh white milk sold to the dairy farms supplying us in New South Wales and South Australia where we have the contract.

If you have any questions, please speak to your Farm Services representative.