Queensland dairy farmers have called the Coles levy a “ridiculous PR stunt” and Woolworths’ Drought Relief milk range a “farce”.
Coles has come under fire from Queensland dairy farmers for refusing to distribute cash from its 10¢-a-litre private-label milk levy through processors.
When Coles announced the 10¢-a-litre price increase on three-litre bottles of private-label milk last month it said 100 per cent of the cash would be donated to farmers through the National Farmers Federation’s drought relief fund. Coles has had a partnership with the NFF since 2012.
However, the NFF has quietly declined to administer the funds, prompting Coles to this week establish a Dairy Drought Relief Fund and invite farmers to apply for grants.
Coles has appointed PwC as an independent auditor to oversee the application process and verify that funds raised are allocated to drought-affected dairy farmers.
The Queensland Dairyfarmers Organisation has called the levy a “ridiculous PR stunt” and said there was a simpler way for Coles to get the money back to farmers – by paying its private-label milk suppliers, Norco and Saputo.
“By refusing to engage with the two processors of Coles private label, Coles is ensuring they can pull the levy at an time, irrespective of whether farmers are still being affected by drought,” said QDO vice-president Matthew Trace.
A Coles spokesman said that after consulting with the NFF and other industry stakeholders, it was decided that a fair, efficient and direct way to distribute the funds was to set up the Coles Dairy Drought Relief Fund.
“As the QDO is aware, the Coles Dairy Drought Relief Fund is independently audited and Coles has committed to raising money for the fund through a 30¢ increase on the price of our three litre own brand milk until the end of the year,” he said.
The QDO has also denounced Woolworths’ new “Drought Relief” milk range, which hit the shelves this week, as a “farce”.
The new range is priced at $1.10 a litre, $2.20 for two litres and $3.30 for three litres. The extra 10¢ a litre will be distributed to drought-affected dairy farmers through Woolworths’ supplier, Parmalat, overseen by a committee that includes an independent auditor.
The QDO has called for milk levies to be applied across all brands and all milk bottle sizes nationwide to maximise funds raised. However, Coles and Woolworths believe that by applying the levy to a dedicated brand or particular size of bottle, they are giving consumers choice to support farmers or not.
Source: afr.com
