We understand that keeping up with the expenses of daily life can be difficult, and it becomes even more challenging when you have to concern yourself with the accessibility of groceries.

Unfortunately, fresh milk is one of those items whose price and availability can be hard to predict. In recent years, dairy farmers have suffered tremendous losses due to rising inflation and ongoing supply chain issues.

It's been a continuous struggle to keep things afloat and ensure everyone in our community can still get their hands on quality dairy.

Since July 2019, Coles has implemented a direct sourcing model, a move that farmers across the country widely applauded.

This means they partner directly with suppliers, creating a solid platform for mutually rewarding relationships between the grocery store and our dairy farmers.

Two milk production facilities have been acquired by Coles in a deal worth $105 million. Credit: Shutterstock.

However, Coles just announced something set to revolutionise not only their relationships with farmers but your access to milk as well. Could it mean cheaper milk prices on coming soon?

The retailer has acquired two automated milk processing facilities from Saputo Dairy Australia for $105 million.

Located in Laverton North in Victoria and Erskine Park in NSW, each of these facilities has the capability to process around 225 million litres of milk per year – enough for the production of their own brands of two and three-litre milk.

What's more, these facilities are located near Coles distribution centres, which means they should be able to reduce lead times and ensure an easier and faster delivery process, so you still get all your fresh dairy products not long after they are produced.

According to Coles' outgoing CEO, Steven Cain, the purchase is an investment into the future and an opportunity to build trust with their direct suppliers.

Coles stated that the agreement will ensure its milk supply. Credit: Pexels/Pixabay.

Mr Cain remarked: 'Whilst improving the security of our milk supply and our supply chain resilience in the dairy sector, these facilities also have sufficient capacity to facilitate further growth opportunities through new product innovation.’

'The acquisition will build on the strong relationships we have developed with our dairy farmers since launching our direct sourcing model in 2019.'

‘Around 90 dairy farmers supply milk direct to Coles, allowing these farmers to invest for the future and ensuring the long-term sustainability of their farms.’

‘These processing facilities will complement our existing investments in our Own and Exclusive brand portfolio and manufacturing capabilities in convenience meals and meat.’

Coles also said the purchase would not impact their relationships with dairy farmers.

Saputo, one of Australia's four major dairy groups, has been adversely affected by a nationwide slowdown in dairy production.

As a result, the company closed a Victoria plant and ceased bulk powder production at two other facilities last year.

Inflation hit the dairy sector hard after farmgate milk prices increased significantly between 2033 and 2023.

The Department of Agriculture, Fisheries, and Forestry noted that farmgate milk prices would rise by 28 per cent to 72.6 cents per litre, driven by high global dairy prices at the beginning of the season and historically low levels of domestic milk production.

According to a report by agribusiness banking specialist Rabobank, ongoing flooding, inflation, and supply chain problems have affected the country's milk supply and, as a result, prices.

However, the department expects milk prices to decrease in the next year as milk production stabilises.

‘The farmgate milk price is expected to fall to 62.5 cents per litre in 2023-24 due to a reduction in export prices (in Australian dollar terms) and a stabilisation in milk production,’ the department stated.

Key Takeaways

• Coles has acquired two automated milk processing facilities from Saputo Dairy Australia for $105 million.
• The facilities in Victoria and NSW can process around 225 million litres of milk per year.
• The acquisition aims to improve the security of milk supply and supply chain resilience and build strong relationships with dairy farmers.
• The purchase is not expected to impact existing relationships with dairy farmers, and milk prices are expected to decrease in the next year as milk production stabilises.

Members, it’s reassuring to know that Coles is taking steps to ensure a steady supply of milk for our community and that our dairy farmers have a secure platform for their hard work.

What are your thoughts on Coles’ latest acquisition? Let us know in the comments whether you think other retailers should follow in their footsteps.

 

[riskydave]

We understand that keeping up with the expenses of daily life can be difficult, and it becomes even more challenging when you have to concern yourself with the accessibility of groceries.

Unfortunately, fresh milk is one of those items whose price and availability can be hard to predict. In recent years, dairy farmers have suffered tremendous losses due to rising inflation and ongoing supply chain issues.

It's been a continuous struggle to keep things afloat and ensure everyone in our community can still get their hands on quality dairy.

Since July 2019, Coles has implemented a direct sourcing model, a move that farmers across the country widely applauded.

This means they partner directly with suppliers, creating a solid platform for mutually rewarding relationships between the grocery store and our dairy farmers.

View attachment 16805

Two milk production facilities have been acquired by Coles in a deal worth $105 million. Credit: Shutterstock.

However, Coles just announced something set to revolutionise not only their relationships with farmers but your access to milk as well. Could it mean cheaper milk prices on coming soon?

The retailer has acquired two automated milk processing facilities from Saputo Dairy Australia for $105 million.

Located in Laverton North in Victoria and Erskine Park in NSW, each of these facilities has the capability to process around 225 million litres of milk per year – enough for the production of their own brands of two and three-litre milk.

What's more, these facilities are located near Coles distribution centres, which means they should be able to reduce lead times and ensure an easier and faster delivery process, so you still get all your fresh dairy products not long after they are produced.

According to Coles' outgoing CEO, Steven Cain, the purchase is an investment into the future and an opportunity to build trust with their direct suppliers.

Coles stated that the agreement will ensure its milk supply. Credit: Pexels/Pixabay.

Mr Cain remarked: 'Whilst improving the security of our milk supply and our supply chain resilience in the dairy sector, these facilities also have sufficient capacity to facilitate further growth opportunities through new product innovation.’

'The acquisition will build on the strong relationships we have developed with our dairy farmers since launching our direct sourcing model in 2019.'

‘Around 90 dairy farmers supply milk direct to Coles, allowing these farmers to invest for the future and ensuring the long-term sustainability of their farms.’

‘These processing facilities will complement our existing investments in our Own and Exclusive brand portfolio and manufacturing capabilities in convenience meals and meat.’

Coles also said the purchase would not impact their relationships with dairy farmers.

Saputo, one of Australia's four major dairy groups, has been adversely affected by a nationwide slowdown in dairy production.

As a result, the company closed a Victoria plant and ceased bulk powder production at two other facilities last year.

Inflation hit the dairy sector hard after farmgate milk prices increased significantly between 2033 and 2023.

The Department of Agriculture, Fisheries, and Forestry noted that farmgate milk prices would rise by 28 per cent to 72.6 cents per litre, driven by high global dairy prices at the beginning of the season and historically low levels of domestic milk production.

According to a report by agribusiness banking specialist Rabobank, ongoing flooding, inflation, and supply chain problems have affected the country's milk supply and, as a result, prices.

However, the department expects milk prices to decrease in the next year as milk production stabilises.

‘The farmgate milk price is expected to fall to 62.5 cents per litre in 2023-24 due to a reduction in export prices (in Australian dollar terms) and a stabilisation in milk production,’ the department stated.

Key Takeaways

• Coles has acquired two automated milk processing facilities from Saputo Dairy Australia for $105 million.
• The facilities in Victoria and NSW can process around 225 million litres of milk per year.
• The acquisition aims to improve the security of milk supply and supply chain resilience and build strong relationships with dairy farmers.
• The purchase is not expected to impact existing relationships with dairy farmers, and milk prices are expected to decrease in the next year as milk production stabilises.

Members, it’s reassuring to know that Coles is taking steps to ensure a steady supply of milk for our community and that our dairy farmers have a secure platform for their hard work.

What are your thoughts on Coles’ latest acquisition? Let us know in the comments whether you think other retailers should follow in their footsteps.

If they are doing something to "HELP", have no doubt it won't bring the price down.. Just like when they took the 10 or 20 cents a liter for the farmers OFF the cost of milk, did the price go down 10 or 20 cents....NOPE!!!

 

[KiwiTrish]

We understand that keeping up with the expenses of daily life can be difficult, and it becomes even more challenging when you have to concern yourself with the accessibility of groceries.

Unfortunately, fresh milk is one of those items whose price and availability can be hard to predict. In recent years, dairy farmers have suffered tremendous losses due to rising inflation and ongoing supply chain issues.

It's been a continuous struggle to keep things afloat and ensure everyone in our community can still get their hands on quality dairy.

Since July 2019, Coles has implemented a direct sourcing model, a move that farmers across the country widely applauded.

This means they partner directly with suppliers, creating a solid platform for mutually rewarding relationships between the grocery store and our dairy farmers.

View attachment 16805

Two milk production facilities have been acquired by Coles in a deal worth $105 million. Credit: Shutterstock.

However, Coles just announced something set to revolutionise not only their relationships with farmers but your access to milk as well. Could it mean cheaper milk prices on coming soon?

The retailer has acquired two automated milk processing facilities from Saputo Dairy Australia for $105 million.

Located in Laverton North in Victoria and Erskine Park in NSW, each of these facilities has the capability to process around 225 million litres of milk per year – enough for the production of their own brands of two and three-litre milk.

What's more, these facilities are located near Coles distribution centres, which means they should be able to reduce lead times and ensure an easier and faster delivery process, so you still get all your fresh dairy products not long after they are produced.

According to Coles' outgoing CEO, Steven Cain, the purchase is an investment into the future and an opportunity to build trust with their direct suppliers.

Coles stated that the agreement will ensure its milk supply. Credit: Pexels/Pixabay.

Mr Cain remarked: 'Whilst improving the security of our milk supply and our supply chain resilience in the dairy sector, these facilities also have sufficient capacity to facilitate further growth opportunities through new product innovation.’

'The acquisition will build on the strong relationships we have developed with our dairy farmers since launching our direct sourcing model in 2019.'

‘Around 90 dairy farmers supply milk direct to Coles, allowing these farmers to invest for the future and ensuring the long-term sustainability of their farms.’

‘These processing facilities will complement our existing investments in our Own and Exclusive brand portfolio and manufacturing capabilities in convenience meals and meat.’

Coles also said the purchase would not impact their relationships with dairy farmers.

Saputo, one of Australia's four major dairy groups, has been adversely affected by a nationwide slowdown in dairy production.

As a result, the company closed a Victoria plant and ceased bulk powder production at two other facilities last year.

Inflation hit the dairy sector hard after farmgate milk prices increased significantly between 2033 and 2023.

The Department of Agriculture, Fisheries, and Forestry noted that farmgate milk prices would rise by 28 per cent to 72.6 cents per litre, driven by high global dairy prices at the beginning of the season and historically low levels of domestic milk production.

According to a report by agribusiness banking specialist Rabobank, ongoing flooding, inflation, and supply chain problems have affected the country's milk supply and, as a result, prices.

However, the department expects milk prices to decrease in the next year as milk production stabilises.

‘The farmgate milk price is expected to fall to 62.5 cents per litre in 2023-24 due to a reduction in export prices (in Australian dollar terms) and a stabilisation in milk production,’ the department stated.

Key Takeaways

• Coles has acquired two automated milk processing facilities from Saputo Dairy Australia for $105 million.
• The facilities in Victoria and NSW can process around 225 million litres of milk per year.
• The acquisition aims to improve the security of milk supply and supply chain resilience and build strong relationships with dairy farmers.
• The purchase is not expected to impact existing relationships with dairy farmers, and milk prices are expected to decrease in the next year as milk production stabilises.

Members, it’s reassuring to know that Coles is taking steps to ensure a steady supply of milk for our community and that our dairy farmers have a secure platform for their hard work.

What are your thoughts on Coles’ latest acquisition? Let us know in the comments whether you think other retailers should follow in their footsteps.

I think the milk being so cheap has sent many farmers broke and we should pay the proper price for our quality milk. It was sort of hinted at the beginning when they all dropped their prices that the supermarkets were wearing the difference in price but now we know that the farmers are not covering the cost of production in a lot of farms and then a lot have closed down.it’s very sad we all want everything for nothing nowadays but forget about who it’s hurting to get it cheap

 

[Thecheesequeen]

I refuse to buy cheap milk. I’m doing my little bit to try to help the farmers, having a dairy farmer in my family and knowing how hard it is for them. I buy farmers’ co-op milk, available in WW. I’m not sure if it’s sold by Coles.

 

[Macarj]

I don't like cheap watery milk. enough said

 

[riskydave]

I don't like cheap watery milk. enough said

105 million dollars...i can bet the rest of my life that Coles won't be paying for it, you and I will so I would not expect any decrease in prices. Coles are just Leach's out of water and in disguise.

 

[Choff5]

We understand that keeping up with the expenses of daily life can be difficult, and it becomes even more challenging when you have to concern yourself with the accessibility of groceries.

Unfortunately, fresh milk is one of those items whose price and availability can be hard to predict. In recent years, dairy farmers have suffered tremendous losses due to rising inflation and ongoing supply chain issues.

It's been a continuous struggle to keep things afloat and ensure everyone in our community can still get their hands on quality dairy.

Since July 2019, Coles has implemented a direct sourcing model, a move that farmers across the country widely applauded.

This means they partner directly with suppliers, creating a solid platform for mutually rewarding relationships between the grocery store and our dairy farmers.

View attachment 16805

Two milk production facilities have been acquired by Coles in a deal worth $105 million. Credit: Shutterstock.

However, Coles just announced something set to revolutionise not only their relationships with farmers but your access to milk as well. Could it mean cheaper milk prices on coming soon?

The retailer has acquired two automated milk processing facilities from Saputo Dairy Australia for $105 million.

Located in Laverton North in Victoria and Erskine Park in NSW, each of these facilities has the capability to process around 225 million litres of milk per year – enough for the production of their own brands of two and three-litre milk.

What's more, these facilities are located near Coles distribution centres, which means they should be able to reduce lead times and ensure an easier and faster delivery process, so you still get all your fresh dairy products not long after they are produced.

According to Coles' outgoing CEO, Steven Cain, the purchase is an investment into the future and an opportunity to build trust with their direct suppliers.

Coles stated that the agreement will ensure its milk supply. Credit: Pexels/Pixabay.

Mr Cain remarked: 'Whilst improving the security of our milk supply and our supply chain resilience in the dairy sector, these facilities also have sufficient capacity to facilitate further growth opportunities through new product innovation.’

'The acquisition will build on the strong relationships we have developed with our dairy farmers since launching our direct sourcing model in 2019.'

‘Around 90 dairy farmers supply milk direct to Coles, allowing these farmers to invest for the future and ensuring the long-term sustainability of their farms.’

‘These processing facilities will complement our existing investments in our Own and Exclusive brand portfolio and manufacturing capabilities in convenience meals and meat.’

Coles also said the purchase would not impact their relationships with dairy farmers.

Saputo, one of Australia's four major dairy groups, has been adversely affected by a nationwide slowdown in dairy production.

As a result, the company closed a Victoria plant and ceased bulk powder production at two other facilities last year.

Inflation hit the dairy sector hard after farmgate milk prices increased significantly between 2033 and 2023.

The Department of Agriculture, Fisheries, and Forestry noted that farmgate milk prices would rise by 28 per cent to 72.6 cents per litre, driven by high global dairy prices at the beginning of the season and historically low levels of domestic milk production.

According to a report by agribusiness banking specialist Rabobank, ongoing flooding, inflation, and supply chain problems have affected the country's milk supply and, as a result, prices.

However, the department expects milk prices to decrease in the next year as milk production stabilises.

‘The farmgate milk price is expected to fall to 62.5 cents per litre in 2023-24 due to a reduction in export prices (in Australian dollar terms) and a stabilisation in milk production,’ the department stated.

Key Takeaways

• Coles has acquired two automated milk processing facilities from Saputo Dairy Australia for $105 million.
• The facilities in Victoria and NSW can process around 225 million litres of milk per year.
• The acquisition aims to improve the security of milk supply and supply chain resilience and build strong relationships with dairy farmers.
• The purchase is not expected to impact existing relationships with dairy farmers, and milk prices are expected to decrease in the next year as milk production stabilises.

Members, it’s reassuring to know that Coles is taking steps to ensure a steady supply of milk for our community and that our dairy farmers have a secure platform for their hard work.

What are your thoughts on Coles’ latest acquisition? Let us know in the comments whether you think other retailers should follow in their footsteps.

Do you mean 1933 to 2023.

 

[Choff5]

Mistake re dates published.