DAIRY farmers and suppliers have been dealt a further blow after supermarket giant Woolworths dumped troubled dairy processor Murray Goulburn (MG) from contracts to supply a range of its private label products including cheese, UHT milk, adult milk powder and cream.
MG revealed on Friday it had lost out during a tender process to supply those product lines, a move it said would cost it about $108 million, mostly falling next financial year.
MG retained the contract to supply private label mozzarella shred cheese as well as the contract to supply private label butter, which has been expanded to include additional products and increased ranging.
The contracts for cheese lines for brands such as Select have been awarded to rival processor Bega Cheese.
MG said it will adjust future manufacturing planning to redirect this capacity to other markets, limiting future revenue and earnings impacts.
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