A BOLD decision a decade ago to establish a boutique milk brand has helped a group of Myponga dairyfarmers weather the latest milk price crisis.
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In fact, Fleurieu Milk Company has had a 30 per cent spike in weekly sales as consumers boycott the $1 a litre generic cartons on supermarket shelves in favour of independent farmer-owned retail brands.
Last weekend, the company celebrated its 10th anniversary with its biggest week ever, selling 125,000L.
To meet growing demand, it has sourced milk from two more farms – taking the total to six.
Fleurieu Milk Company’s milk is sold in more than 600 outlets, including Foodland and IGA stores, plus cafes and restaurants across the state. In the past fortnight it has added 40 new businesses from as far afield as Whyalla, Leigh Creek, Tailem Bend and Naracoorte.
Sales and marketing executive Nick Hutchinson says they are humbled by the public support.
Speaking at the Regional Summit last week in Mount Gambier, Mr Hutchinson said collaboration with other farmers, then independent retailers and other local brands has been the key to their success.
Facing an uncertain financial future, Barry and Merridie Clarke, Geoff and Louise Hutchinson and Chris and Karen Royans came together in 2006 and Fleurieu Milk Company was born.
“If you were a taxi driver and you got $50 for a fare, but the petrol cost $60, you wouldn’t be a taxi driver for very long. The same was facing these dairyfarmers,” he said.
He says working together gave the farmers greater financial capacity and marketing reach.
The company has gradually built its brand awareness, but a defining moment was turning its back on an opportunity to supply Woolworths and Coles in 2011-12. Instead, it began building a supply relationship with Foodland.
“Foodland’s marketing strategy is ‘great food lives here’, which is a distinct difference from Coles’ ‘down down, prices are down’ slogan.
Mr Hutchinson says their point of difference remains freshness, aiming to have the milk on supermarket shelves within 24 hours.
“We will never compete on price but on quality and freshness, absolutely,” he said.
The company is undergoing a $600,000 expansion to increase storage and introduce door sales. It has also signed a contract with Australian Fine Foods to make its yoghurts available to 24 countries.
“Our vision remains to ensure dairyfarming remains profitable for the next generation,” Mr Hutchinson said.
