![Wistow dairyfarmer David Pitt. Wistow dairyfarmer David Pitt.](/images/transform/v1/crop/frm/silverstone-agfeed/2045076.jpg/r0_0_400_266_w1200_h678_fmax.jpg)
EARLY figures suggest the South Australian Dairyfarmers' Association plan to stabilise the industry's future with its SADA Fresh milk brand is off to a strong start.
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Sales figures from Coles chief operating officer John Durkan for the new product - being sold exclusively by the supermaket for 12 months - indicate customer demand for it trebled over that of other new products introduced at the same time.
"Indications from about 50 stores in SA also show that it was popular across Adelaide and regional areas, with Gawler selling more than any other store in the state," he said.
For every litre of SADA Fresh sold, 20 cents will be allocated to a new fund to finance projects aimed at maintaining the viability of SA's dairy industry.
The fund will be run by a separate board appointed by SADA and made up of directors selected for their expertise.
Parmalat is processing the milk - sourced only from SA farms - at its Clarence Gardens factory.
Mr Durkan, SADA president David Basham and SA Agriculture Minister Gail Gago launched the milk last Friday at Coles' Rundle Mall store in Adelaide.
Mr Basham said early sales of the product had been promising with at least four stores selling out last weekend.
"It has been received extremely well by consumers and farmers, with positive comments coming from everywhere," he said.
But questions are being asked about the details of the funds. The money raised by SADA Fresh could be spent on "nearly everything" on the proviso that it benefited SA dairyfarmers.
"We get a lot of engagement from Asia, particularly China, wanting to invest in SA infrastructure in Australia to process milk to meet their requirements", Mr Basham said.
"But we're not able to actually give them the information they need to look at SA as an option and normally they end up going elsewhere.
"For instance, at Shepparton, in Vic, Australian Consolidated Milk and Freedom Foods Group is building a $40 million factory to produce UHT milk for the export market.
"If we had had the resources we could have attracted them to SA."
He said SADA's deal with Coles - initially the idea of chief executive officer Ken Lyons, Mr Durkan and Family First MLC and Mount Compass dairyfarmer Rob Brokenshire - would not only benefit Parmalat suppliers.
* Full report in Stock Journal's October 31 edition.