Woolworths' Farmers' Own milk brand hits the shelves

Woolworths' Farmers' Own milk, the result of a direct deal between the retailer and seven dairy farmers, is now on shelves in NSW.

The brand is being positioned as an old-fashioned farm-fresh product, and is so far being stocked in eight stores on the state's mid-north coast.

The retailer struck a deal with seven dairy farmers from the NSW Manning Valley a few months ago. Though the price Woolworths is paying dairy farmers per litre hasn't been divulged, one of the farmers described it as “more than Lion and Parmalat paid”, according to a report by ABC Rural.

Other farmers have reportedly already expressed interest in joining the seven farmers who are supplying Woolworths.

As part of the deal, Woolworths buys the milk off the farmers and the contract packaging of the milk is supplied by dairy processor, Parmalat.

The Australian Competition and Consumer Commission (ACCC) gave the go-ahead for the farmers to collectively bargain with Woolworths back in April.

The ACCC said the farmers could collectively bargain with Woolworths and its agent, Milk2Market, for three years.