Woolworths is phasing out Farmers’ Own milk across Australia, ending a brand built around an unusual direct-supply relationship between the supermarket and a small group of dairy farmers.
The milk has already been removed from shelves in South Australia, while Western Australia, Queensland, New South Wales and Victoria will follow as remaining arrangements wind down through 2027.
For shoppers, the change means a familiar premium milk option will disappear. For participating farmers, the bigger concern is finding another buyer for milk that must be collected and processed every day.
Woolworths says existing contracts will be honoured and suppliers have an option to extend their agreements for another 12 months. The retailer has not provided a detailed public explanation for ending the brand.
Why is Woolworths discontinuing Farmers’ Own?
Farmers’ Own was launched in 2013, initially involving dairy farmers in the Manning Valley region of northern New South Wales. Unlike conventional supermarket milk arrangements, Woolworths contracted directly with participating farmers for raw milk.
The model was intended to give those farmers greater certainty over volumes and farmgate returns. It remained relatively small compared with Woolworths’ wider milk business, which relies heavily on processors to supply finished products.
Tim Bale, a northern New South Wales farmer who helped establish Farmers’ Own, believes the economics became increasingly difficult as sales declined.
He said milk produced beyond what was required for Farmers’ Own still needed to be sold, sometimes at a loss. Bale also pointed to limited marketing and competition for supermarket shelf space.
Price creates another challenge. Farmers’ Own costs more than Woolworths’ cheaper home-brand alternatives, meaning shoppers trying to reduce grocery bills may choose the lower-priced bottle despite wanting to support farmers.
Those pressures come as everyday food costs remain closely watched. Earlier coverage of Woolworths’ milk and bread price pressures highlighted how higher supplier costs can flow through Australia’s grocery supply chain.
What happens to Farmers’ Own suppliers?
This is where the phase-out becomes more significant than the disappearance of a supermarket label.
Dairy cows continue producing milk regardless of whether a supply contract exists. Raw milk also requires refrigeration, regular collection and processing, so farmers cannot simply store production while waiting indefinitely for another buyer.
Bale has warned that some producers are finding it difficult to secure alternative buyers because processors do not necessarily need additional milk. That could leave affected farms facing pressure on both contract availability and farmgate prices.
A similar problem has emerged separately in Queensland, where a dairy farmer losing a processor contract has struggled to find another buyer despite the state bringing in milk from elsewhere.
The apparent contradiction highlights how dairy markets work. National or state milk demand does not guarantee every farm has a nearby processor with spare capacity, suitable collection routes and demand for extra volume.
Australia’s dairy problem is bigger than one brand
Australian Dairy Farmers president Ben Bennett has criticised Farmers’ Own as too small to materially change conditions across the dairy industry.
His concern is that niche programs may benefit individual suppliers but cannot resolve broader pressures facing Australian dairy farming, an industry he says has been declining for around two decades.
Farmers face costs including feed, fertiliser, fuel, electricity, water, labour, machinery and transport. At the same time, supermarkets compete aggressively on the prices consumers see on shelves.
That relationship between suppliers and major retailers is receiving increased scrutiny. Australia’s supermarket reforms have put additional focus on the conduct of large grocery chains, an issue explained in our coverage of new supermarket rules affecting Coles and Woolworths.
For dairy producers, however, regulation around supermarket conduct does not automatically create processing capacity or guarantee another company will buy their milk.
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Will Woolworths milk prices rise?
There is no confirmed evidence that ending Farmers’ Own will directly increase the price of Woolworths’ broader milk range.
Retail milk prices depend on multiple factors, including farmgate payments, processing, packaging, electricity, refrigeration, freight, fuel, competition and supermarket pricing decisions.
The Farmers’ Own phase-out also does not mean Woolworths is abandoning Australian fresh milk. Other Woolworths milk products and dairy brands will remain available.
Woolworths has not announced a direct national replacement for Farmers’ Own based on the information currently available.
What shoppers and farmers should watch through 2027
Availability will differ by state while the phase-out progresses. South Australia has already lost Farmers’ Own, while customers elsewhere may continue seeing it until local arrangements end.
For farmers, the crucial question is whether alternative processors can take their milk and what price they will offer. Dairy Australia’s official milk production and sales data provides broader context on how Australian dairy supply is changing.
Farmers’ Own represented only a small part of Australia’s milk market, but its disappearance exposes a larger challenge: shoppers want affordable milk while farmers need sustainable returns and reliable buyers.
More than a decade after Farmers’ Own attempted to create a closer link between farm and supermarket, affected suppliers now face a different question — who will buy their milk once their Woolworths agreements finally end?
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