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RELATED: Milk price 'crucifying' dairy farmers: Bendigo supermarket boss
Demand for branded milk is creating fresh opportunities for dairy companies.
Jonesy’s Dairy Fresh, which has farms near Kerang, is trialling a weekly milk home delivery service in Bendigo from June 1.
Co-owner Rhonda Somerville said there was high demand for Jonesy’s products in the community, but limited stockists available to independent milk companies.
“In view of the milk price debacle going on with Murray Goulburn and Fonterra, there has been a lot of public support for local farmers and us being local and producing our own milk they’ve jumped on board,” she said.
Mrs Somerville could not specify a number of people inquiring after the home delivery trial, but said the business would need to take on other suppliers to help meet demand at the rate it was gaining support.
Jonesy’s has five dairy farms – two in the Kerang area; two in Tullakool, New South Wales; and one in Mount Gambier, South Australia.
Frustration about milk pricing was the inspiration for the business, which started in December 2009.
Two litres of Jonesy’s full cream milk costs $4, double the price of home-brand milk sold at Coles and Woolworths.
“This dollar-a-litre milk has devalued milk to the point where it is not viable for anyone,” Mrs Somerville said.
“Our payment price on farm is 50 cents a litre.
“Realistically, to break even, you need at least 40 cents a litre.”
She said Murray Goulburn and Fonterra gave a fraction of that back to farmers.
Symons’ Dairy in Bendigo has seen a spike in orders for branded milk.
The business distributes milk to clients such as IGA supermarkets, schools, petrol stations, and smaller retailers around the Bendigo area.
Owner Ian Symons said there was at least a 15 percent increase in branded milk sales this week.
“We think it is fantastic because we think the consumers are getting what they want and the IGA milk sales appear to be up,” he said.
He said a rise in the sale of branded milk benefited not only dairy farmers, but the whole supply chain, and was hopeful the trend would continue for some time yet.
“I think it has struck a chord with a lot of people, particularly the social media campaigns,” Mr Symons said.
Mrs Somerville said people could call 5453 1802 for further information about the home delivery service.