Victorian Dairy strike could threaten ice cream supply

Workers for Saputo, Fonterra, Lactalis and Peters voted to stop work for 48 hours after negotiations for better pay and conditions reached a standstill.

The dairy products, which also include milk and cream, will not be processed or transported.

At least one IGA store in North Melbourne has introduced purchase limits on some dairy products.

Coles and Woolworths have said they are not anticipating shortages, and have no plans to implement purchase limits.

Worker at Saputo's Leongatha factory Derek Dent said this fight was about preserving communities.

"My father worked at the same factory I work at for 15 years and I have worked there for 20 years so I understand just how important is that these good, secure dairy jobs are available in the future for our children and our community," he said.

"This isn't just our fight. It's for every community that's backed these giants for decades."

Fonterra, which produces Woolworths home brand milk and cream, said disruptions to the supply of their product should be minimal.

"We are confident that the supply of our dairy products will continue during the industrial action and will be working closely with our customers to keep them updated," supply chain director Rob Howell said.

"Our farmers will continue milking, and we will be doing everything we can to ensure that their precious, perishable milk can be collected and not wasted."

Dairy supply chains are already being challenged by a Transport Workers Union (TWU) strike that started on October 17.

Farmers are generally able to store milk on site for about two days.

UWU national secretary Tim Kennedy said he expects this to affect dairy availability on supermarket shelves.

He said industrial action was not a decision the union took lightly.

"Given the historic nature of the strike across the state consumers can expect a big impact on supply chains and their favourite products," he said.

"Dairy workers have been grinding day in and day out, especially during the pandemic, where some sites agreed to accept wage offers as low as 1.5 per cent as a favour to the company.

"They're not even asking for a wage increase that matches inflation, just 5 per cent or 6 per cent that gets them a little closer to being able to keep up with skyrocketing costs."

A spokesperson for Woolworths said any dairy shortages will be limited to stores in Victoria.

Mr Howell said Fonterra had engaged in good faith negotiations with UWU.

"We are disappointed that the UWU has encouraged some of our people to take industrial action but respect their right to do so.

"We have a fair and reasonable offer on the table of a minimum 10.5 per cent salary increase over three years plus more leave options and greater protections for our workers."

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