South Australian-owned Laucke Flour Mills operates a factory at Bridgewater on Loddon, where it employs about 70 staff members.

Woolworths told the company this month six products would not be stocked in its supermarkets Australia-wide after November 27.  

Three of the products were discontinued because of poor sales. It is not clear why the other products were pulled from shelves. 

A scone mix carrying the Country Women’s Association brand was also due for deletion but was saved earlier this week after a public outcry. 

In a statement on the company’s website, a Laucke spokesperson said Woolworths refused to accept proposed price increases the flour company hoped would “recover unavoidable and significant increases in the costs of electricity and ingredients”.

“Our justifiable cost increases were rejected by Woolworths across these items which led to (the) Woolworths delisting decision," the spokesperson said.

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“Laucke is 100 per cent Australian-owned, managed by third and fourth generation family members, and this decision by Woolworths puts Aussie jobs at risk.”

It is understood price increases were accepted on nine other Laucke products, to which a supermarket spokeperson said the chain “remained committed… now and well into the future”.  

“In the last year alone we have accepted an increase of approximately 20% on the majority of the Laucke products we have been ranging,” the spokesperson said.

“A small number of products have been discontinued on our shelves due to low customer demand, while others because of consistent non-supply from Laucke.”

It is the second time this year Woolworths has cancelled a central Victorian-made product. In August, Donald company Kookas Country Cookies was told its biscuits would no longer be available to customers outside Victoria and Tasmania. 

Kookas, which uses Laucke flour to bake its biscuits, used social media today to label the supermarket’s decision “disappointing”. 

“Australia now seems to be dominated by corporate giants who have no interest in small business, everyday Australians having a go, mateship or excellent products,” the Facebook post read. 

As of 2016, the Bridgewater Bakehouse was also a customer of Laucke’s. 

Laucke acquired the Bridgewater mill in 2000. The site supplies a range of bagged and bulk specialty products to eastern Australia and export markets.

Some of the cancelled goods will remain on sale at IGA and Coles stores. 

Products delisted at Woolworths:

Products still on sale at Woolworths: