THE Australian Competition and Consumer Commission (ACCC) has approved a bid by Manning Farmers to strike a supply deal with Woolworths.
The deal is unique in that it bypasses processers, allowing local farmers to deal directly with one of Australia’s major grocery retailers.
Independent Lyne MP, Rob Oakeshott, congratulated the local consortium of seven Manning Valley dairy farmers on the ACCC’s decision, which clears the way for a collective bargaining agreement with Woolworths.
“This decision is likely to result in a new premium brand of milk on Woolworths shelves, but more importantly it has the potential to deliver better returns to farmers by cutting out the middle man,” Mr Oakeshott said.
“The dairy industry throughout NSW has been under tremendous pressure since deregulation over a decade ago.
“Declining farm gate prices have threatened the viability of our farm businesses for some time now.
“Recognising the problem was easy – finding a solution was always going to be the challenge, which is why the Manning initiative is so exciting.
“Instead of relying on an inflexible regulatory solution, this initiative is from farmers and is thinking from outside the box.”
Mr Oakeshott, who recently commenced a consultation process with all stakeholders in the dairy industry said the Manning initiative, while involving only seven farmers, had the potential to grow.
“It allows the supermarket to continue to compete for customer loyalty on price without putting at risk the suppliers.
“Well done to our magnificent seven!
“Your efforts will change the way farmers do business with the grocery giants who until now have held all the bargaining chips.”
Mr Oakeshott said he would continue to work with stakeholders to empower farmers through enterprise bargaining, further regulatory changes and access to broader markets.
