Dairy farmers sceptical of Coles' new milk deal

COLES says it is improving farmers' lot - but for local dairy producers, the jury's still out on its new milk deal.

The supermarket giant signed long-term deals worth $2.6 billion with dairy co-operatives Devondale and Norco on Wednesday.

John Saville, who owns a dairy farm near Nobby, said farmers would only benefit if Coles replaces its $1 per litre milk with a higher-priced product.

"If Coles are going to pay a premium on the milk, and it's not going to go a dollar a litre, as long as that nonsense stops, it'll help the suppliers.

"If this private labeled milk goes in as cheap milk, it'll still have the same effect.

"Just as to what effect it will have on the other branded sales is the question."

Mr Saville said he saw the Coles deal as largely a step to improve public relations.

"Being cynical I'd say they've picked the two cooperatives for the PR exercise.

"The country's littered with empty dairies.

"Probably in a ten mile radius from here, in the last ten years, there would be ten gone."

Queensland Dairyfarmers Organisation president Brian Tessman said while the long-term nature of the deal was welcome, he was concerned about farmers during the transition to the new contracts.



GALLERY: Motorbikes, mates and magic at Morgan Park

premium_icon GALLERY: Motorbikes, mates and magic at Morgan Park

See who was out and about at the Southern Downs Road Race Series

WARNING: How to stop fur babies stressing in storms

premium_icon WARNING: How to stop fur babies stressing in storms

Don't let your pets hurt themselves.

CRIME WRAP: Have you seen hoons?

CRIME WRAP: Have you seen hoons?

Police hunt for info about bike theft and two men face drugs charges

Local Partners