SA Dairyfarmers' Association president David Basham said the launch of Woolworths' Barossa and Mid North milk brand Farmers' Own was good news for consumers.
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"It is giving a choice to consumers in a Woolworths store," he said.
"Rather than buying store branded milk for $1 a litre they will be able to support a particular state or region."
Mr Basham said his only concern about the model was that it supported a small section of the industry, opposed to the industry's brand SADA Fresh.
But he said each dairy enterprise needed to find the right match for its business.
"Not all farmers in that region have chosen to go down that path," he said.
"For some it didn't suit their business.
"Each individual business needs to look at what is best for them."
The deal follows several of the state's dairyfarmers moving away from the traditional processor model, including the Fleurieu Milk & Yoghurt Company, Robe Dairy, Tweedvale Milk, Alexandrina Cheese Co and B.-d. Farm Paris Creek, which have all set up brands selling fresh milk.
A fellow Barossa dairy, Jersey Fresh, also sells its own brand in local supermarkets and at markets.
It also echoes Coles launching the SADA Fresh milk brand, which recently celebrated its second anniversary.
Elizabeth Anderson
Stock Journal's magazine editor.
Stock Journal's magazine editor.
