Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Proposed new 10 year Wollworths Victoria milk partnership

MEDIA RELEASE
Fonterra Australia and Woolworths announce
proposed new 10 year milk partnership for Victoria

Thursday, 3 April 2014; Fonterra Australia and Woolworths today announced that Fonterra Australia has been selected as the preferred supplier to process Woolworths Own Brand milk in Victoria for the next 10 years in a deal that is great for customers and farmers.

The proposed long-term arrangement will give farmers certainty that will allow them to invest in their businesses with the confidence that they have a guaranteed buyer for their milk. Woolworths’ existing contracts were for a period of one year.

It also means that all Woolworths Own Brand milk sold in Victoria will be made and processed in Victoria, supporting local farmers and jobs in regional communities.

The proposed deal will see Fonterra investing for the future of the Australian dairy industry by investing more than $30 million into a state-of-the art milk processing plant at its Cobden site in South West Victoria.

The investment will support 30 new jobs at the Cobden facility and have positive flow-on effects for farmers and communities in southwest Victoria. Fonterra and Woolworths will continue to work together to finalise contractual arrangements to reach a binding supply agreement.

Woolworths Managing Director of Supermarkets, Tjeerd Jegen, said the new contract will be a win for farmers, Woolworths customers and Victoria.

“We want farmers and Fonterra to provide quality milk for our customers. Fonterra has told us that with the certainty of a long-term contract they and their farmers can invest and innovate.

“Changes like integrated seals for milk containers and new, state-of-the-art processing equipment would not be possible without the investment brought about by this certainty. It’s these innovations that will see better tasting, fresher milk available in Woolworths stores. We hope our customers will enjoy the difference.

“We don’t want to see milk shipped long distances which only adds cost and increases the time between the farm and the supermarket shelf. These new contracts mean local farmers will supply Victorian milk to Victorian families,” he said.

Fonterra Australia Managing Director Judith Swales said Fonterra is excited to partner with Woolworths in this milestone initiative.

“This proposed arrangement will help us deliver on our strategy to provide healthy, nutritious dairy foods – in every dairy category – to Australians. It expands our current white milk portfolio complementing our Riverina Fresh milk business in New South Wales.

“Using Fonterra’s global innovation leadership and the high-quality milk from our farmers, we can optimise the freshness and shelf life of milk to ensure a better product for Woolworths Victorian customers.

“Just as importantly, the proposed arrangement will provide certainty for dairy farmers so they can invest on farm and grow their milk production. Australia is our second largest milk pool outside of NZ, so we take a long-term view and aim to deliver profitability, growth and sustainability in the Australian dairy industry.”

The contractual arrangements are being finalised by the parties. The modernised facility at the Cobden site will be commissioned in early 2015.

- ENDS -

For a video news release, audio news release and B-roll on the announcement please click here


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news