Woolworths has been slammed for its decision to remove Australian farmer-owned Norco milk from all of its 150 supermarkets and Metro-branded stores in metropolitan Sydney.

EastAUSmilk dairy advocacy group president Joe Bradley said the move "shows that big supermarkets don't give a stuff about the consumer or the farmer".

"Norco is the lifeblood of a lot of farmers in Queensland and New South Wales and without Norco the dairy industry would be in a hell of a worse state," Mr Bradley said.

"This is the supermarket's way of controlling the processor."

In a written statement a Woolworths spokesperson said the decision was based on customer demand and did not affect any stores stocking Norco milk north of Sydney.

"While we have seen lower demand for Norco in metropolitan Sydney stores, we know they have a very loyal following up north," the spokesperson said.

"In our Sydney stores, the space made available by the removal of Norco has been given to other Australian-owned milk brands — Riverina and Dairy Farmers."

The Woolworths spokesperson said the company had worked together with Norco on the change and "we'll continue to partner with them to deliver quality milk based on customer demand".

But Mr Bradley said supermarkets manipulated sales by the way they stocked their shelves and processors were penalised if they spoke out.

"All of a sudden it's 'Oh yeah, we don't need to sell that product anymore, because we're not selling as much'."

Established in Byron Bay in 1895, Norco is a 100 per cent Australian owned dairy co-operative with 326 active members on 190 dairy farms in northern New South Wales and south east Queensland.

Norco chief executive Michael Hampson declined to comment, with the company instead releasing a statement.

"For customers who want to support our hard-working farmers, we encourage you to visit our store locator at www.norcofoods.com.au and click on 'where to buy', which shows where all Norco branded products are sold across Australia," it read.

Call for boycott

Federal Member for Page, Kevin Hogan, said he was outraged by Woolworths' decision.

He called on consumers to boycott its stores.

"The net result of this is that Norco have lost the Sydney metropolitan market for their white milk, so that's going to be a huge blow to them," he said.

"But not only that, Woolworths are now going to be sourcing ice cream sticks from Slovenia, and their one litre tubs of ice cream from New Zealand.

The Woolworths spokesperson said the supermarket had supported Norco after the reopening of its ice cream factory last year after it was damaged in the 2022 floods, immediately stocking Norco brand ice cream in stores nationwide.

They said Norco manufactured Woolworths branded ice cream sticks, pints and two litre containers "in a number of states".

Mr Hogan said he would support small independent supermarkets and extend his boycott to Coles after learning it also sold a range of home brand ice cream sticks that it had produced in Macedonia.

Coles has been contacted for comment.

Dairy difficulties

Despite record high prices being paid to dairy farmers for their milk, Joe Bradley said they also had record input costs, and there was not enough money in dairying for people to afford to take over farms if they had to take on debt.

"If the industry was profitable we wouldn't be losing farmers every day ... milk is getting shorter and shorter," he said.

He said consumers and the government should be worried Australia was a net importer of dairy products when it used to be a major exporter.

"Now if that doesn't scare the hell out of you, it scares the hell out of me," he said.