New milk contract good news for dairy farmers

Victoria's dairy farmer lobby group is tipping a new 10-year contract to supply milk to Coles could push up farmer incomes.

Dairy processor, Murray Goulburn, has signed up to supply fresh milk for Coles home brand products.

The deal will also see the return of Devondale premium brand lines of milk and locally-produced cheese to Coles supermarket shelves.

Kerry Callow, from the United Dairy Farmers, says the deal could benefit all Victorian dairy farmers.

"This is a significant 10-year contract that should add some stability in at least one market for those that supply Murray Goulburn," he said.

"Murray Goulburn does tend to be the benchmark for where all other prices come off in the market place."

Source: ABC News, 10 April 2013