Woolworths reported an 18.1 per cent increase in net profit to $1.14 billion for the financial year 2025-26, with its Australian Food segment sales reaching $53.9 billion.
Australian Dairy Farmers president Ben Bennett said Woolworths’ use of imported United States dairy products, including its home-brand cheese, put pressure on home-grown Australian produce, dairy farmers, processors and regional jobs.
Mr Bennett said the Woolworths case was symptomatic of a broader and worrying trend, with both US and European imports increasingly appearing on Australian supermarket shelves.
“And some of those products sit in green and gold-style packaging, so shoppers aren’t even being given clear information about whether they are buying Australian dairy or imported product,” he said.
“Every imported product that replaces Australian dairy takes demand away from local processors and farmers. And that demand supports farms, processing capacity, regional communities and Australia’s food security.”
Mr Bennett said major retailers needed to be clear about what they put on shelves and how those choices affected local production.
“This is not just about shopper choice. It is about retailer responsibility,” he said.
“Governments are talking about food security and resilient supply chains, but sourcing decisions like this put more pressure on the farmers and processors who produce food here at home.
“Woolworths and other major supermarkets decide which products get shelf space, and those decisions help determine whether Australia maintains a strong domestic dairy industry.
“Once farms close and processing capacity disappears, it is extremely difficult to rebuild.”
Mr Bennett said Woolworths’ strong profit result made it fair to ask how the retailer supported Australian dairy farmers and local food production.
He said Australian dairy farmers were forced to compete with imported home-brand products from much larger overseas markets.
“Australian dairy farmers are not asking for charity. They are asking major retailers to value Australia’s own produce, its own food,” Mr Bennett said.
“Woolworths should explain how it will keep Australian dairy farmers and processors in its supply chain while selling Woolworths-branded imported dairy products.”
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