National Foods has retained its private label milk contract with Woolworths in all states except Queensland and 29 stores in ACT.
“Whilst we are pleased to retain around 75 per cent of the Woolworths Private Label milk business, we are disappointed with the outcome and implications for Queensland and the ACT region,” Murray Jeffrey, general manager of milk sourcing and inbound logistics for National Foods, said. “This will have major implications for Queensland dairy farmers currently supplying National Foods.”
Jeffrey noted that the amount of milk marketed in Queensland will be reduced by more than 25 per cent. National Foods said it will cushion the impact on suppliers to some extent by not renewing its agreement to buy some milk from another processor when that contract expires in September 2010.
“We believed we submitted a competitive tender and Woolworths has made a commercial decision,” he said.
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