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 longterm view and aim to deliver profitability, growth and sustainability in the Australian dairy industry.”
The modernised facility at the Cobden site will be commissioned in early 2015.
For a video news release, audio news release and B-roll on the announcement please click here
For interview requests and further information please contact:
Woolworths Press Office ph (02) 8885 1033
Fonterra Australia Communications: Nick Lembo ph 0438 482 370 and Adrienne Sharp ph 0405 760 720
About Woolworths
Woolworths is Australia’s largest supermarket chain. Operating 926 stores across Australia, Woolworths relies on more
than 115,000 staff in stores, distribution centres and support offices to provide our customers with superior service,
range, value and convenience.
Woolworths prides itself on working closely with Australian growers and farmers to ensure the best products are
available to customers. We source 96% of all fresh fruit and vegetables and 100% of fresh meat from Australian farmers
and growers.
About Fonterra
Fonterra is a global leader in dairy nutrition - the preferred supplier of dairy ingredients to many of the world’s leading
food companies and is also a market leader with our own consumer dairy brands in Australia/New Zealand, Asia/Africa,
Middle East and Latin America. The farmer-owned New Zealand co-operative is the largest processor of milk in the world,
producing more than two million tonnes of dairy ingredients, value added dairy ingredients, specialty ingredients and
consumer products every year. Drawing on generations of dairy expertise, Fonterra is one of the largest investors in dairy
based research and innovation in the world. Our more than 16,000 staff work across the dairy spectrum from advising
farmers on sustainable farming and milk production, ensuring we live up to exacting quality standards and delivering
every day on our customer promise in more than 100 markets around the world.
In Australia, Fonterra operates 11 manufacturing sites across Victoria, Tasmania and New South Wales and employs
around 2,000 people. Fonterra collects around 1.7 billion litres of milk annually from almost 1,300 farmer suppliers and
their 300,000 dairy cows. This milk is made into the many Fonterra dairy foods that generations of Australians have grown
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up with and love, including Perfect Italiano , Mainland , Western Star and Nestle® Ski®*. The business also sells dairy
ingredients to many of the world’s leading food companies and it operates a dedicated sales channel for the foodservice
industry, providing a full range of dairy products specifically designed for commercial kitchens.
*Used under licence by Fonterra Brands (Australia) Pty Ltd. ® Registered Trade Mark of Société des Produits Nestlé S.A.
Vevey, Switzerland. NUTRITIONAL COMPASS ®