An independent milk producer says its products have been stripped from most of Coles' Victorian supermarkets after the dairy refused to give the supermarket giant a bigger profit margin.
Sallie Jones, who started the company with dairy farmer Steve Ronalds in 2016, said the decision came as a shock. "Private-label milk remains cheaper than branded milk and has remained a more popular choice among consumers since 2018-19," the IBISWorld report said.Much of the fresh milk and other dairy products sold in supermarkets across the country is produced by foreign-owned companies.
The next largest are Canadian company Saputo with a 10 per cent market share , and ASX-listed Australian company Bega Cheese with a 9.6 per cent share . "We remain committed to continuing to support independent and local producers, and from July, we will focus on selling Gippsland Jersey in 16 stores in Victoria where we see most demand for this local brand from customers," it said.Farmers have said they are unwilling to give evidence to a parliamentary committee on supermarket prices without reassurance their supply agreements would be protected.
"If consumers choose to want to support an Australian owned … then the choice should be theirs," Ms Jones said."We're just hoping that the phones start ringing and that we can supply more stores to absorb that extra stock that won't be going to Coles.
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