Diary farmers to skip middleman in Woolworths deal

A group of dairy farmers from the Manning Valley in NSW is looking to skip the middleman by launching a new brand of milk, dealing directly with Woolworths.

The AFR is reporting a deal is close to being sealed, with the Manning valley farmers already loged a collective bargaining notification with the ACCC.

The new milk brand, potentially named Farmers Own milk, may be in shops by the middle of the year, with the deal being revealed earlier this month.

Woolworths general manager Pat McEntee told the AFR that the direct sourcing model already works well for other fresh produce lines.

“For us to transition into our dairy business with the same model we have in other fresh sourcing makes sense for us” he said.

“This trial, although we believe it will deliver commercial benefits to the farmer, we also see it as a freat first step towards bringing the farmer closer to the consumer”

The deal could see farmers get an extra 10-14c per litre.

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