Devondale signs 10-year deal with Coles Dairy producer Devondale has signed a decade-long deal with Coles to supply the supermarket giant's home brand milk. Devondale, which is the public face of the Murray Goulburn Co-operative Co Ltd, will provide Coles supermarkets in Victoria and NSW with its private label milk from July next year. In the agreement announced on Wednesday, Coles will also stock Devondale-branded cheese products and pasteurised milk. The milk will be processed at two new facilities in Melbourne and Sydney, in which Devondale is investing $120 million. Devondale managing director Gary Helou said the agreement would be profitable for the company's dairy farmers because it included a premium above the farm gate price. Mr Helou said the daily milk market was dominated by foreign-owned companies. "The consumers will benefit from low-cost, high quality milk that has a direct link from the farm to the supermarket shelf," he told reporters in Melbourne on Wednesday. Australian Dairy Farmers president Noel Campbell said the deal was a much-needed commitment to the industry in the midst of the milk-price wars. "It is sincerely hoped that this arrangement, and others like these, flow through as expected to farmers' bottom line," he said. Australian Dairy Farmers have been campaigning against the decision by Coles, Aldi and Woolworths to cut the price of milk to $1 a litre. He said Devondale was now "very hopeful" of a similar deal with Coles' supermarket rival Woolworths. Woolworths last month began a trial in which it deals directly with a group of dairy farmers on the NSW mid-north coast. NSW Farmers chief executive Matt Brand said the deal meant some dairy farmers would finally get a fair deal for their products. "If this model is successful we are hopeful that it may be able to be expanded," he said.