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Farmers mil store sell-out

Rueben HaleThe West Australian

WAFarmers have described the first week's sales of its farmers' brand milk as "well exceeding expectations".

The State's peak farm lobby group launched WAFarmersFirst milk in Coles stores just over a week ago and has reported to _Countryman _ it was on track to smash its first month's sales forecast of 30,000 litres.

Coles is selling the milk for $1.50 a litre, with 20 cents from each sale going to WAFarmers under a deal with Coles and Parmalat-owned dairy processor Harvey Fresh.

Harvey Fresh packed 50,000 litres shortly after the launch, driven by stronger than expected demand reported by Coles in the first days of the milk being available on its shelves.

WAFarmers president Dale Park said the milk had sold out at several Coles stores on the first days of sales.

"The support from WA consumers has been fantastic and I think the consumer can definitely see the value in supporting the State's farmers with this milk," he said.

Mr Park said, based on the early success, the lobby group was already considering expanding the WAFarmersFirst range.

"Coles are interested in flour and we are talking to CBH and about that but its early days," he said.

"But Harvey Fresh tells me the 3-litre milk is a big seller so maybe that will be our next announcement."

Meanwhile, Nationals Agricultural Region MLC Paul Brown has criticised WAFarmers for allowing Coles to continue selling $1-per-litre milk. "The agreement between WAFarmers and Coles should be transparent considering the campaign WAFarmers has held against Coles and Woolworths in regard to their predatory supply agreements," he said.

"What the industry needs to understand is there will now be no structure for the advocacy of the interests of the dairy industry because of a conflict of interest stemming from this agreement, bearing in mind the $1-milk program has already taken $100 million out of the industry."

However, Mr Park accused Mr Brown of not being completely aware of the situation.

"Mr Brown had obviously not been reading the newspapers because, as has already been widely reported, it was a verbal agreement with Coles," he said.

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