NATIONAL Foods had given WA suppliers more time to sign summer milk contracts after the formation of a collective bargaining group.
The WA Dairy Farmers Collective Bargaining Group was formed a week before NFL contracts were due to be signed on December 15.
NFL spokesman Ian Greenshields said the deadline for signing contracts had been extended to March so suppliers could take advantage of collective bargaining.
Producers wanted more time to negotiate contracts due to higher grain prices while indicative prices for contract milk would fall on average 1.7c/L with a 3-4pc drop on contract volume. NFL suppliers in WA could now choose six-month or 12-month contracts. The company wanted 131 million litres of milk for next year.