ADF Challenges Woolworths Over Imported US Private-Label Dairy
Australian Dairy Farmers (ADF), the country’s peak dairy producer representative body, has criticised Woolworths over its use of imported dairy products in private-label ranges. The organisation’s comments followed the supermarket group’s report of an 18.1% increase in net profit to $1.14 billion for fiscal 2026.
Woolworths also reported $53.9 billion in sales for its Australian Food division. ADF President Ben Bennett said the retailer’s procurement practices were inconsistent with its “Fresh Food People” branding and argued that imported dairy products were reducing demand for Australian milk solids and placing pressure on domestic processing and regional employment.
Bennett specifically referred to home-brand cheese and butter produced in the United States. He criticised packaging that uses green-and-gold colours, saying it could leave consumers unclear about the products’ country of origin. ADF said shoppers seeking to support Australian producers should receive clearer information at the point of sale.
The organisation also pointed to increasing supplies of lower-priced dairy commodities from North American and European producers. It said imported bulk cheese and butter used in private-label contracts reduced volumes available to Australian manufacturing plants and regional dairy areas. ADF said lower throughput could affect processor margins, farmgate price increases and the operating position of family farms.
Bennett said supermarket chains had responsibilities extending beyond retail prices. His comments came as federal and state authorities continued discussions about food security and agricultural resilience. ADF said procurement decisions by the country’s major supermarket groups influenced the viability of dairy farms and processors.
The organisation warned that closures of domestic farms and processing facilities could remove capital equipment and specialist knowledge that would not be quickly restored. It also cited cost pressures facing dairy farmers, including diesel, feed and regulatory-compliance expenses.
ADF called on Woolworths and other retailers to explain how they would support Australian processors and farm suppliers while continuing to sell private-label dairy products. The group’s objections concern both the sourcing of the products and the presentation of their origin to consumers.
