PLAYING its trump card of being 100 per cent Australian and farmer-owned, forward-thinking northern NSW dairy co-operative Norco is expanding its domestic footprint hot on the heels of its groundbreaking move into China.
The Lismore-based co-operative has stepped up its presence in the Sydney market significantly, partnering with a new distributor to send a range of fresh milk products, plus cheeses and yoghurts to the metropolitan hub.
Norco chairman, Northern Rivers milk producer Greg McNamara, said the products were going primarily to corner stores and small independent supermarkets, whose clientele tended to be big users of social media where the message has been strong about the benefits of the farmer co-operative business model.
Norco paid an average farmgate price of 53.25 cents a litre in the 2013-14 financial year, up from 51.74 the previous year and arguably the highest farmgate price in the country.
It employs more than 600 people, the vast majority in regional areas.
"We are receiving a lot of requests for Norco milk in Sydney based on the fact we are an Australian farmer-owned company," he said.
"In fact, the inquiry is coming in on a daily basis from many areas outside our traditional geographical markets, with the question when will you be in our area."
Norco's leaders say the move into the Sydney market will be targeted.
Rather than take on the majors at full steam, it will be about securing a share of the market at the right margin.
General manager of Norco Foods Andrew Burns, in the co-operative's monthly bulletin, said with Sydney being Australia's largest population base, to enter that market and challenge the multi-nationals with an Australian, farmer-owned product range was exciting.
Norco is also stretching to the north, moving into new Queensland markets in Brisbane, on the Sunshine Coast and around Toowoomba.
Mr Burns said new trade in Brisbane had picked up an incremental two million litres in the past few months and a series of radio adverts supported in voice by Ray Hadley and Alan Jones was about to be launched.
Meanwhile, Norco is on the front foot to safeguard its fresh milk products in China from counterfeiting, using state-of-the-art smartphone application technology.
The co-operative began shipping fresh milk to China, which is selling for between $7 and $9 a litre, last year.
By teaming up with a global supply chain standards organisation, GS1 Australia, and a brand protection platform, Authenticateit, Norco has linked its milk to a free and easy way for consumers in China to check its authenticity by scanning the barcode.
The app automatically detects the language settings on the mobile phone and presents all information in Chinese.
GS1 Australia, the local brand of a worldwide not-for-profit organisation that facilitates efficient international business, has played a key role in the development of Authenticateit.
The package uses GS1's numbering system and global trade item number technology to provide tracking and tracing and product identification for all Norco milk products in China and to prevent copycat replications of the Norco label.
Shan Goodwin
Journalist for The Land on the North Coast.
Journalist for The Land on the North Coast.
