Coles will discuss opportunities to invest in on-farm sustainability initiatives, with Western Australian dairy farmers.
The supermarket has restructured its Coles Brand milk supply model in WA by contracting directly with Australian dairy farmers.
Coles Brand fresh white milk sold in WA is now sourced directly from their farmers under transparent contracts that include a minimum farmgate price until June 2023.
Additionally to creating a dedicated milk pool, Coles is leveraging its direct relationship with industry stakeholders to establish the Coles Sustainable Dairy Development Group (CSDDG).
WA dairy farmer Don Fry from Brunswick Junction is one of 10 WA dairy farmers who have been supplying milk to Coles under direct contracts since October.
“We were thrilled Coles was able to offer us a long-term contract – it gave our family, with sons on the farm, genuine confidence in our future,” explains Mr Fry.
“The communication has been a real standout and the growing direct relationship is really refreshing.”
Coles Dairy General Manager, Charlotte Rhodes says the new sourcing arrangement helped to ensure security of supply for Coles customers.
“By working directly with dairy farmers, we’re able to offer a transparent price, as well as more choice regarding the length of the contract, providing improved certainty around income.
“As part of our Sustainable Dairy Development Group, we’ll be meeting directly with WA dairy farmers over the coming weeks to discuss measures aimed at improving the long-term sustainability of their farms.”
The latest contracts bring the total number of Australian farms supplying milk to Coles under direct contracting arrangements to almost 60.