FLEURIEU Peninsula dairyfarmers and a SA cheesemaker have teamed up in a $15 million partnership described as a "win-win".
Six dairyfarmers from the Myponga and Mount Compass region have signed a two-year contract to supply milk directly to Glynde-based cheese company La Casa Del Formaggio.
La Casa began in 1988 with husband-and-wife team Gerardo and Rosa Cicchiello and initially sourced milk direct from producers.
But as the company grew this became harder to manage and they started sourcing milk through an intermediary.
Managing director Claude Cicchiello said the company was looking to "take control of our own destiny".
"From the beginning we thought this had to be mutually beneficial," he said.
"We knew we were paying a premium and we thought this was an opportunity for us to save a bit but also to pay the farmers more."
Towards the end of last year Claude, making the most of a contact in the industry, began knocking on the doors of some dairy producers with his offer.
"We were coming with a different story," he said.
"We are a local company and we can show exactly where our milk is going and into what products, with a lot of the products staying in SA."
For third-generation dairy farmer Ben McHugh, McHugh and Sons, Mount Compass, the fact the offer came from a fellow family-run SA business was a big selling point.
"Since they are a smaller processor there was a little bit more risk but as time went on we liked their business plan and we liked being able to associate with a good product," he said.
While the initial contract is only set for two years, all are confident it will grow and continue.
Other farms involved in the partnership include AMDENA Farm, Jolley Farm, Misty Downs Farm and Whispering Pines with 12m litres of milk in the first year.
* Full report in Stock Journal, August 14, 2014 issue.
