SALES of the South Australian Dairyfarmers' Association's SADA Fresh milk are exceeding initial expectations of the parties involved.
Today (Friday) marks six months to the day since SADA Fresh was launched, with 40 cents from every 2-litre bottle of milk sold going towards a central fund to finance projects that directly benefit SA's dairyfarmers and ensure the industry's viability.
The product is sourced and processed by Parmalat using milk from its SA supplier base and sold through Coles stores throughout the state.
SADA president David Basham said the brand was returning about $20,000 a month, equating to about 10,000 units sold every week.
He said SADA was still paying back the investment to establish the product, and getting close to being fully paid off.
"We will have a meeting next week to develop the charter for the fund we are setting up from the sales of the milk," Mr Basham said.
"Sales from day one have been good and have continued at a fairly steady rate during the six months since it was launched.
"The expectation between Coles, Parmalat and ourselves (SADA) was to shift about 80 units a store a week, but we're doing about 80 units/store/week of the full-cream product and 113 units/store/week of the low-fat product."
Mr Basham said there would be enough funds to call for the first round of project applications at the start of the new financial year.
Applications will be assessed by a separate board, to be confirmed next week.
Mr Basham said SADA had been canvassing people for the board, but could not confirm any names at this stage.
"We're looking at a small board of probably three people - a well-respected agricultural figure as the chair from outside the dairy industry, someone with financial expertise and someone connected to the dairy industry," he said.
"There is the potential for many things to be funded, which might include market developments and research and development on farms that doesn't meet traditional funding models.
"The other thing it can be used for is a source of seed funding to actually get projects established, which might generate investment from elsewhere.
"It's a matter of not making it too restrictive and allowing things that benefit SA dairyfarmers as its first and major priority."
Mr Basham said SADA was discussing strategies about how to broaden the market base for the brand, which included getting the milk into stores such as IGA and Woolworths.
"It also involves the possibility of other products manufactured here in SA, such as cheese or yoghurt," he said.
"It would be our intention to set up a stable of products under the SADA Fresh brand if we can find the right opportunities."
The concept of SADA Fresh is something that has resonated with other state dairy lobby groups.
Earlier this month, Mr Basham met with the Qld Dairyfarmers Organisation and gave it an overview of the project.
It is also understood the WA Farmers Federation is considering similar options.
*More in the May 1, 2014 edition of Stock Journal.
