MOCULTA, South Australia, dairyfarmer Andrew Koch has welcomed news of the sale of the Murray Bridge and Jervois former United Dairy Power facilities, but has warned producers may be wary.
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"It is really positive to have another milk processor open in the region," he said.
"And to see somebody new start-up and use their own milk outright instead of on-selling is positive."
However he said Beston Foods would need to "come up with something pretty special" when it came to price offers, particularly considering the "intriguing" reports he had heard of its projected high production.
"The offer would have to be pretty good to entice farmers back," Andrew said.
In late April the Kochs were one of a number of suppliers left short when UDP suddenly closed its doors.
"It was a stressful time - it's not everyday you only have 48 hours to find a new home for milk," he said.
However Warrnambool Cheese & Butter contacted Andrew quickly, which eased some of the pressure and created goodwill, especially when it agreed to honour UDP prices until the end of the financial year.
Elizabeth Anderson
Editor of Stock Journal.
Editor of Stock Journal.
