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Norco Co-operative, Australia's largest and oldest dairy co-operative has announced a new deal with Woolworths, which has expanded its ranging of the Co-op's favourite tasting cream products throughout 167 stores in Queensland and northern NSW.
The partnership reflects efforts by the supermarket to support the 127-year-old business and its 281 farmer members, as they work to rebuild and recover following the devastating flood event that ravaged northern NSW and the Norco Lismore ice cream facility.
A new deal between Norco and Woolworths Supermarkets will see more cream products on shelves; a strategic move that will positively impact Norco's 281 farmer members, many of whom were severely impacted by the recent flooding event also.
The new partnership is a strategic move by the dairy co-operative to maximise existing supply and salvage the cream that would have otherwise made ice cream, while production remains halted due to the floods.
Long time supplier to Norco are farmers Andrew and Chris Mullins of Carinya, Allora, who moved to Norco in 2007.
The brothers supply Norco with 2.8 million litres of milk annually for the bottled and cream market to their Gold Coast plant from their 250 Holstein Friesians.
They only had one day during the wet weather that the milk truck could not collect, but are lucky to have large on-farm storage.
"We think the concept is great to put the excess milk back into cream," Andrew said.
He said he had just received a 5c/litre increase for the May/June update with the next one due in 12 months time.
The brothers are third generation dairy farmers and share the workload with Chris looking after the cows, while Andrew manages feeding rations and together they both share the farming workload.
"The way the operating prices are being lifted we may get a better increase from the cream market," Andrew said.
Norco General Manager Commercial & Strategy Ben Menzies says that the business is working tirelessly to support its farmer members through this exceptionally difficult period of production and acknowledges how quick Woolworths were to also lend its support.
"With the loss of the ice-cream factory, we had to re-evaluate how to best utilise our fresh cream that would have otherwise made our great tasting ice cream.
"This expanded ranging is just one of the ways we're helping to safeguard a prosperous future for our hard-working dairy farmers who have been doing it especially tough in recent times, and we're grateful for Woolworths' support which has enabled us to make this business pivot," he adds.
Offering an additional 5000 litres per week of cream to Australian consumers , the arrangement will see expanded ranging of three Norco cream products all of which picked up Silver medals at the recent 2022 DIAA Australian Dairy Product Competition.
The expanded range includes its 300mL and 600mL Thickened Cream, and 250g Sour Cream in Woolworths stores - a strategic move by the dairy co-operative to maximise existing supply while its ice cream production remains halted due to the floods.
Woolworths Cream Category Manager, Justin Heffernan says supporting Norco and its farmers through their flood recovery was a priority and that this practical solution would see customers benefit too.
"We care for all Australians, and we're invested in a prosperous future for Australian dairy," said Justin Heffernan.
"It's a real win for our customers in northern NSW and Queensland who can now enjoy great tasting local Norco cream as we head into the winter season of hearty home cooking and indulgent desserts."
The announcement follows recent news that Norco would increase its farmgate milk price for its 281 active farmer members for May and June 2022, a move which will see a $1.6M injection go towards supporting its farmer base rebuild and recover from the flooding event.
In a bid to support farmers following rising costs of production and challenging operating conditions, members will receive an additional five cents per litre ($0.05) on all milk supplied, with additional price increases expected to be announced on or before 1 June 2022.
Norco Chief Executive Michael Hampson remains unapologetic in his Co-operative's efforts to provide support to their farmers.
"Alongside creating the best tasting dairy products on the market, our number one priority is to help create a sustainable future for our dairy farmers, which is even more critical following recent events.
"Our farmers work exceptionally hard and at the end of the day, they need to know their product is valued, by the industry and by consumers. Norco certainly understands this and is why we're working so hard to deliver improved value for our farmers.
Mr Hampson adds that when shopping for dairy, he encourages consumers to choose Norco with the knowledge that every single cent goes back to helping their farmers recover and to safeguard the future of the Australian dairy industry.
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