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Woolworths extends dairy levy

Woolworths has extended its existing dairy contribution payments on two and three litre fresh own brand milk varieties until June 2021.

According to the retailer, the 10 cent per litre levy has contributed around $50 million to dairy farmers since it first introduced the initiative in 2018. Based on current volumes, these support payments are expected to contribute an extra $30 million to dairy farmers over the next 12 months.

The move to extend the support is said to provide certainty to more than 450 dairy farmers supplying milk used in the production of Woolworths branded milk as the federal government’s Mandatory Code of Conduct comes into full effect and drives change in the industry.

“Our levy has provided much-needed relief to dairy farmers and we’re grateful for our customers’ support of the program,” says Woolworths Director of Fresh Food Paul Harker.

“While conditions have improved and farmgate prices have gone up since we started the levy in 2018, we’re extending payments to provide certainty while dairy farmers and processors find their feet under the new mandatory code.

“This is set to return tens of millions to dairy farmers over the next 12 months above and beyond the farmgate price they’re paid by their processors.”

Woolworths will also establish a $5 million fund to provide infrastructure and technology grants to dairy farmers to help improve on-farm efficiency and profitability over the next three years.

The post Woolworths extends dairy levy appeared first on Retail World Magazine.



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