Cobram to make cheese for Coles

Coles launched its direct sourcing model in Victoria and southern and central NSW in 2019, contracting directly with local farmers to supply milk for Coles brand fresh white milk in those markets and offering a competitive farm gate milk price.Under the direct sourcing model, Coles offers a farm gate price directly to farmers and pays dairy processors to process the milk under a toll processing agreement.

The cheese products will be produced at Saputo's Cobram and Allansford factories.

Coles brand Australian cheese is made using 100 per cent Australian milk sourced from dairy processors who buy milk from farmers, under contracts that allow the processor rather than Coles to set the farm gate price.Coles's general manager for dairy Charlotte Rhodes said the success of direct sourcing for Coles brand milk and positive feedback from dairy farmers had prompted the expansion of the model to Coles brand Australian cheese.“Every time we have been to market looking to buy milk directly from farmers the response has been very positive, and we really value the relationships we have been able to build with our dairy farmer suppliers,” she said.