Woolworths announced it will continue selling its Drought Relief range on the eastern seaboard for up to six more months.
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The limited-edition range, which paid an extra 10 cents per litre for two and three litre milk varieties directly to drought-affected dairy farmers, was due to be wrapped up by January 2019.
However, the company announced it would continue while it works “with the dairy industry on longer-term reform measures.”
Dairy Connect CEO and Drought Relief Committee member Shaughn Morgan welcomed the extension and said feedback from dairy farmers had been positive.
“The announcement is great news for dairy producers and dairy communities on the eastern seaboard who supply Woolworths with fresh nutritious milk via their processors such as Parmalat, who are to be congratulated,” he said.
“Our farmer members have used the Woolies’ drought relief funds during the past three or four months to underpin the cost of buying-in fodder for their cows.”
The Drought Relief range has provided $3.1 million in relief payments to more than 280 drought-affected dairy farmers across New South Wales, Queensland and Victoria so far.
Woolworths Fresh Food director, Paul Harker, said it was clear the effects of drought remain.
“Having heard lots of positive feedback from dairy farmers in recent weeks, we felt it was important to provide certainty on the future of the effort. At the same, we know it remains a short-term measure for drought,” he said.
“We want to find a pathway to a more sustainable dairy industry over the long term and will be engaging closely with industry to this end over the coming months.”
The distribution of funds is overseen by the Drought Relief Committee, which includes Premium Milk Limited Chairman Peter Jervis, Dairy Connect CEO Shaughn Morgan, Parmalat General Manager - Supply Chain Vince Houlihan and an independent auditor from KPMG.
Mr Morgan said the industry appreciated the support of Woolworths customers who have purchased milk from the Drought Relief range.
“We’re grateful Woolworths has listened to Dairy Connect’s representations on behalf of dairy producers and extended the sale of their drought relief milk range and the industry appreciates the support of the Woolworths’ customers who have backed the relief program.”