Dairy strike forces supermarkets in a major city to impose limits
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Major supermarkets like Coles and Woolies have begun rationing milk to two bottles per customer. They've also slapped buying limits on butter, cream, ice cream, cheese and yoghurt.
This is due to a strike by dairy workers fighting for better pay and conditions. And it's left some bare gaps on the shelves in the dairy aisle.
The idea behind implementing product limits is to prevent customers from engaging in panic buying, a behaviour that became all too common during the pandemic.
Karen Meredith, who owns the Murrumbeena IGA store, found it necessary to set limits on dairy products because of a recent incident when customers swamped the store, buying two to three bottles of two-litre milk.
Lindsay Carroll, representing the National Retail Association, appealed to consumers to maintain a calm and polite demeanour when interacting with supermarket staff during the ongoing strike.
She emphasised that the strike's consequences were already affecting the retail industry, with businesses having to display 'out of dairy' signs due to mounting frustration caused by product shortages.
Why is there suddenly a shortage of essential dairy products in Melbourne? This city has a thriving local dairy industry, with approximately 1,500 farmers responsible for producing milk, cream, butter, and cheese.
Behind the scenes, there are factory workers who process the milk and drivers who transport it to supermarkets—it's these individuals who are currently on strike.
Employees from major Australian dairy companies, including Fonterra, Saputo, Lactalis, and Peters factories, have walked off the job. This includes 150 milk tanker drivers and 1,400 factory workers.
This strike has disrupted the regular collection of milk from farms by the tanker drivers. As a result, a significant backlog of fresh milk accumulated on the farms with no way to transport it.
Victorian dairy farmers have also been forced to dispose of 14,000 litres of milk, valued at $10,000, because Saputo tanker drivers, who are part of the Transport Workers Union-led strike, refused to perform their usual pick-ups.
The factory disruptions have also led to shortages of popular dairy products, including Woolworths home brand milk, Western Star butter, Peters ice cream, and well-loved cheeses like tasty and mozzarella.
The primary issue behind this strike is negotiating a new enterprise bargaining agreement. The drivers are seeking higher pay, and they are also reportedly dissatisfied with their start times.
Meanwhile, the workers at the dairy factories are unhappy with the offered pay raises, which range between 2.5 and 3 per cent, as they are pushing for a minimum of 5 per cent.
Woolworths has acknowledged that it is taking steps to mitigate the disruptions in its milk supply, and there is a possibility that the availability of its in-house brand of milk may be impacted.
Although the retailer isn't directly affected by the milk tank driver strike, as they don't source milk from Saputo, they are supplied by Fonterra, one of the processors affected by an ongoing plant worker strike.
Woolworths clarified that while there might be a reduction in the supply of their milk brand, they have not imposed any purchase limits.
Coles also confirmed that they are not facing any supply issues and have not set any purchase limits.
ALDI, similarly, assured that they have not implemented any purchase limits at the moment.
Members, consider this your heads up. Shortages of dairy products might be on the horizon, so it's a good idea to stock up if you can! What are your thoughts on this news? Let us know in the comments below.
This is due to a strike by dairy workers fighting for better pay and conditions. And it's left some bare gaps on the shelves in the dairy aisle.
The idea behind implementing product limits is to prevent customers from engaging in panic buying, a behaviour that became all too common during the pandemic.
Karen Meredith, who owns the Murrumbeena IGA store, found it necessary to set limits on dairy products because of a recent incident when customers swamped the store, buying two to three bottles of two-litre milk.
Lindsay Carroll, representing the National Retail Association, appealed to consumers to maintain a calm and polite demeanour when interacting with supermarket staff during the ongoing strike.
She emphasised that the strike's consequences were already affecting the retail industry, with businesses having to display 'out of dairy' signs due to mounting frustration caused by product shortages.
Why is there suddenly a shortage of essential dairy products in Melbourne? This city has a thriving local dairy industry, with approximately 1,500 farmers responsible for producing milk, cream, butter, and cheese.
Behind the scenes, there are factory workers who process the milk and drivers who transport it to supermarkets—it's these individuals who are currently on strike.
Employees from major Australian dairy companies, including Fonterra, Saputo, Lactalis, and Peters factories, have walked off the job. This includes 150 milk tanker drivers and 1,400 factory workers.
This strike has disrupted the regular collection of milk from farms by the tanker drivers. As a result, a significant backlog of fresh milk accumulated on the farms with no way to transport it.
Victorian dairy farmers have also been forced to dispose of 14,000 litres of milk, valued at $10,000, because Saputo tanker drivers, who are part of the Transport Workers Union-led strike, refused to perform their usual pick-ups.
The factory disruptions have also led to shortages of popular dairy products, including Woolworths home brand milk, Western Star butter, Peters ice cream, and well-loved cheeses like tasty and mozzarella.
The primary issue behind this strike is negotiating a new enterprise bargaining agreement. The drivers are seeking higher pay, and they are also reportedly dissatisfied with their start times.
Meanwhile, the workers at the dairy factories are unhappy with the offered pay raises, which range between 2.5 and 3 per cent, as they are pushing for a minimum of 5 per cent.
Woolworths has acknowledged that it is taking steps to mitigate the disruptions in its milk supply, and there is a possibility that the availability of its in-house brand of milk may be impacted.
Although the retailer isn't directly affected by the milk tank driver strike, as they don't source milk from Saputo, they are supplied by Fonterra, one of the processors affected by an ongoing plant worker strike.
Woolworths clarified that while there might be a reduction in the supply of their milk brand, they have not imposed any purchase limits.
Coles also confirmed that they are not facing any supply issues and have not set any purchase limits.
ALDI, similarly, assured that they have not implemented any purchase limits at the moment.
Key Takeaways
- Major supermarkets in Melbourne are rationing milk sales due to a major dairy workers' strike.
- Some stores are limiting customers to two bottles of milk each, and there could be a potential impact on the supply of specific milk, butter, ice cream, cheese and yoghurt brands.
- In some cases, Victorian dairy farmers have been forced to dump large quantities of milk as striking drivers refused to do their typical pickups.
Members, consider this your heads up. Shortages of dairy products might be on the horizon, so it's a good idea to stock up if you can! What are your thoughts on this news? Let us know in the comments below.