Agreement Reached Between National Foods and Tasmanian Suppliers’ Collective Bargaining Group

The agreement we have reached will secure our milk supply and enable us to work together with farmers on rebuilding the National Foods brand in Tasmania.

21 Dec 2009 --- National Foods and the Tasmanian Suppliers Collective Bargaining Group have reached agreement on National Foods’ pricing model, at a meeting in Latrobe.

General Manager Milk Procurement and Inbound Logistics, Murray Jeffrey said National Foods is delighted that the result provides a positive outcome for everyone.

“The agreement we have reached will secure our milk supply and enable us to work together with farmers on rebuilding the National Foods brand in Tasmania. Equally, farmers will receive a better price deal than they would from any other major milk buyer in the state.”

Tasmanian Suppliers’ Collective Bargaining Group spokesman Phil Beattie said: “We are delighted to have reached agreement on the new pricing structure and we will be recommending that all our members sign the contract.”

National Foods has undertaken to provide to every supplier a comparison of the price they are receiving for their milk, according to their individual supply patterns, with the price they would receive if they were supplying Fonterra. This will be done twice each year.

Also, National Foods has simplified the process for distributing the $1.1 million hardship assistance package, which is a part of its offer. Each farmer will receive their portion in January rather than having to apply to have it paid as reimbursement for on-farm expenses.