Woolworths dumps Farmers' Own milk brand

Supermarket giant Woolworths is phasing out its "Farmers' Own" milk brand, a product promoted for offering a "better deal to farmers." Bottles have already disappeared from shelves in South Australia, and the brand will be removed from stores in Western Australia, Queensland, New South Wales, and Victoria by 2027. Woolworths has assured its dairy suppliers that current contracts will be honored, including options for a 12-month extension.

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I think the general public want to support farmers, but it's hard when they're going in there and they're seeing a cheaper price [alternative].

Tim Bale, a dairy farmer from northern New South Wales who helped create the Farmers' Own brand in 2013, expressed sadness over its discontinuation. He believes the public wants to support farmers but struggles when faced with cheaper alternatives. Bale suggested that the brand's limited shelf space and insufficient marketing contributed to its lack of profitability, leading to oversupply being sold at a loss, making the venture unviable for Woolworths.

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Unfortunately, when you're dealing with such a big company like [Woolworths], we got lost in the shelf space.

Australian Dairy Farmers president Ben Bennett described the Farmers' Own brand as a "token exercise" and a "PR sort of situation" rather than a significant financial improvement for the dairy industry. He highlighted that the local dairy industry has been in decline for 20 years, calling the situation "dire." Bennett emphasized the need for more substantial solutions beyond niche brands to address the larger issues facing dairy farmers.

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We recently consulted our Farmer's Own dairy suppliers about an upcoming contract expiry. We are working closely with our suppliers and will continue to honour our contract terms, which includes an option for farmers to extend the contract for an extra 12 months.

Farmers' Own milk is priced higher than Woolworths' own-brand milk and represents a small fraction of the overall market. While Woolworths has not detailed the reasons for discontinuing the brand, Bale's comments suggest financial viability was a key factor. Concerns remain among farmers about finding alternative buyers for their milk, as the industry faces ongoing challenges with oversupply and price pressures.

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The oversupply that wasn't going into Farmers' Own, they were selling that at a loss. And as our sales decreased, unfortunately, by lack of marketing … that overproduction at a loss becomes more and more, and then to Woolies, it becomes unviable.