Harvey Fresh Increases Price For Challenge Suppliers

AUSTRALIA - The Western Australian Farmers Federation (WAFarmers) applauds the decision by Harvey Fresh to bring former Challenge Dairy suppliers up to parity, which was announced at the WAFarmers Annual Dairy Conference last Thursday.

2 August 2011

2 minute read

Oceania

WAFarmers Dairy Section President, Peter Evans, says that the WAFarmers Dairy Council has been heavily involved in lobbying Western Australia’s three processors, Harvey Fresh, Brownes Dairy and Lion (formerly National Foods), to increase the prices paid to former Challenge suppliers.

“Since the Challenge Dairy went into administration last October, former Challenge suppliers have been receiving much lower farmgate prices for their milk than other dairy farmers,” explained Mr Evans.

“WAFarmers is very happy that Harvey Fresh has made the decision to pay their 26 former Challenge suppliers the same amount as all of their other suppliers.”

The increase in prices comes after Coles’ announcement at the WAFarmers Dairy Conference that Harvey Fresh had won the contract to supply their private label milk from long-term supplier, Brownes.

Harvey Fresh Business Manager, Rob Musitano, says Harvey Fresh had committed to lifting farmgate prices as quickly as commercially possible, and the new Coles contract had enabled this.

“This contract (with Coles) requires significant volumes of milk from Harvey Fresh and will create a platform on which to build additional market opportunities.”

However, Mr Evans warns that the WA dairy industry is still facing some tough challenges.

“Since the collapse of Challenge Dairy, confidence amongst dairy farmers has been very low,” said Mr Evans.

“And with continued heavy milk discounting, the inability to find and retain staff, and fluctuating demand, the WA dairy industry still has a number of battles on its hands.”