VICTORIA’S peak dairy group will throw its support behind calls to ensure farmers receive a fair deal from the sale of domestic dairy products. This comes after milk processor Saputo this week flagged it would seek to scrap the controversial one dollar per litre supermarket milk, once contracts with retailers expired.
The United Dairyfarmers of Victoria has long urged an end to retailers’ race-to-the-bottom tactics of selling milk and cheese below market prices to Australian consumers, which devalues dairy products.
“Farmers are sick of seeing discounted private label dairy products on supermarket shelves, so it’s great to see a processor showing leadership by starting these conversations,” UDV President Adam Jenkins said.
“When retailers compete to sell the cheapest products, the supply chain pushes the price cuts right back to the farmer, who then misses out on receiving a fair price.”