SADA Fresh shakes up milk market

Since its launch in October 2013, the SA Dairyfarmers' Association brand has sold more than 2 million litres in 50 Coles outlets across the state.

SADA president David Basham said the results were a "great success".

"We were hoping to get a reasonable market share - it was a bit of test it and see, but it's pleasing to get the results," he said.

"It's given the SA dairy industry some funds to use towards projects we wouldn't have been able to in the past."

The SADA Fresh brand links the association with processor Parmalat and supermarket chain Coles to sell locally-sourced SA milk, with 20 cents from each litre sold placed in a fund to aid dairy projects in SA.

In its first year, SADA Fresh exceeded targets of 1mL and a 2 per cent market share on Coles shelves, instead clearing 1.15mL and earning a 3.8pc share of Coles' fresh milk sales by the end of October 2014.

The brand's momentum has continued in its second year, achieving its next million litres of sales within 10 months, topping 2mL in August.

Mr Basham said the brand had great support from consumers in metropolitan and regional areas.

"The key thing is it gives consumers a choice that wasn't clear to them," he said.

"There are (supermarket) home brands or branded products linked to national businesses.

"There wasn't a brand representing SA dairyfarmers and this filled that gap."

The milk has proved especially popular in dairyfarming regions.

Coles St Agnes, in Adelaide's north east, has recorded the highest sales volume - 140,000L - while Mount Barker residents have bought 100,000L.

SADA chief executive Ken Lyons said the success of the brand had prompted talk of expansion, including potentially rolling out the milk in Coles Express stores, or producing other dairy products such as butter and cream.

While the focus in the first year was on getting established, SADA Fresh went international in its second year, becoming the first SA fresh milk brand sold in China.

Mr Basham said the primary goal was to set a pathway to the Chinese market for other SA dairy companies.

Mr Basham said SADA Fresh had recorded gradual growth in Nanjing, China, and a step-up in sales when it reached its second market, Shanghai. The milk is flown in weekly from Adelaide.

He said there was some work involved in getting the market established.

"The brand SADA Fresh doesn't mean much in China but Australian milk does mean something and the growth is happening off that," he said.