Harvey Fresh wins Coles milk deal

Harvey Fresh has announced it will take on the contract to supply Coles with private label milk for its Western Australian supermarkets.

The Harvey-based milk processor said the deal, which will commence in October, would elevate it to become the state’s largest supplier of fresh milk.

Under the new agreement Harvey Fresh agreed to increase the farm gate price to its 26 former Challenge Dairy suppliers to a standard price for all its suppliers, Coles said in a statement today.

Coles merchandise director John Durkan said the new contracts would build a more sustainable industry.

“This re-distribution of our dairy business in Western Australia means that more local processors and dairy farmers will benefit from partnerships with Coles,” Mr Durkan said.

“We believe that these contracts will build long-term sustainable relationships with dairy processors and farmers in Western Australia.

“Harvey Fresh has advised us that as a result of this new partnership with Coles, they will be able to expand their production facilities and invest in new equipment.”

Harvey Fresh marketing and sales director Kevin Sogiovanni said the dairy would continue to supply branded products to major supermarkets and smaller retailers.

“The supply of Harvey Fresh milk to consumers who enjoy its rich and full taste will remain unchanged,” Mr Sorgiovanni said.

The contract to supply Coles with milk for its private branded dairy products was previously held by Brownes.

Brownes-branded dairy products will remain for sale in supermarkets, Coles said.

Coles also said it was working with Brownes to produce a range of value-added dairy products in WA, including Coles brand cream, yoghurt and sour cream, which are currently manufactured interstate.