Devondale/Murray Goulburn (MG), an Australia-based farmer-owned dairy co-operative, is seeking milk supplies from the dairy farmers in the NSW-Sydney market region from 1 October 2013.
The co-operative asked dairy farmers to submit their intentions by 23 July 2013.
Devondale shareholder relations general manager Robert Poole said that the move is aimed at securing milk for the Sydney market and the NSW Sydney market pricing would be different to pricing in southern Australia.
"In April this year we announced our entry into the NSW daily pasteurised market via a unique ten-year agreement to supply Coles private label and a relaunch of Devondale-branded daily pasteurised milk. This agreement commences on 1 July 2014," Poole added.
"The entry of MG into this market is extremely important for the NSW industry but it does create a transition period.
"In the lead up to the 2014-2015 season, MG wants to support an orderly transition to the new market structure and wants to support all farmers through this period. Accordingly we have brought forward our milk collection plans.
"Because the NSW-Sydney region of MG will be totally focused on a single market - daily pasteurised milk, the pricing system is geared for this market. This includes flat milk supply, agreed milk supply volumes and different pricing for milk components.
"We have put forward a competitive pricing system that is available to all farmers in the central NSW regions such as the Manning Valley, Hunter Valley, Central Tablelands and Southern Highlands.
"Farmers are invited to express their intent to supply MG from 1 October and once we meet critical business goals such as minimum volumes, we aim to enter supply agreements with NSW farmers.
"Next year,MG requires approximately 100 million litres in its Sydney plant. However,our vision is to be the primary milk handler and processor in NSW and we are confident that we can utilise or place all milk in the state through our Sydney plant or our commercial milk business," he concluded.
