As we are all aware large portions of our dairy farms, particularly Queensland, New South Wales and northern Victoria, are faced with severe drought. This is having an impact on the cost of production due to significant increases in the cost and availability of feedstocks and the cost of irrigation water. This on top of what is already a very low margin industry for farmers and processors.

Lactalis Australia has a long history in the Australian Dairy sector dating back to the 1930’s. Our ongoing commitment to support Australian Dairy Farms will continue in a practical manner, working alongside its’ farming community.

As such and in conjunction with Woolworths, Lactalis Australia is supporting the launch of the new Woolworths private label drought relief range of milks. These products will have a 10c/ltr drought levy that we will pass through to drought affected farms. This process will be managed by Lactalis Australia and overseen by an industry committee and independent auditor. All of the 10c will be passed through to Lactalis Australia’s farmers on a monthly basis as part of their normal payment process. The independent Auditor will be from KPMG.

Lactalis Australia will monitor the situation weekly and review as required.