TASMANIAN National Foods suppliers are expected to sign milk-supply contracts early next year.
An agreement was reached between the dairy farmers' Collective Bargaining Group and National Foods in Tasmania on Monday, ending a four-month battle over pricing.
In what CBG spokesman Phil Beattie described as a win for the farmers, National Foods has abolished its "model farm" payment structure and replaced it with a transparent pricing system.
It will provide each supplier twice-yearly with an individual comparison of the price they received for their milk from National Foods against Fonterra's price.
"We have established a fair way of giving us a new price that doesn't have to be argued about each year," Mr Beattie said.
"We have established that (our prices are) linked to the world market with a premium."
National Foods spokesman Geoff Lynch said the company was confident it now had the endorsement of suppliers.
