THE future in fresh milk for the small family dairy could well rest on the value consumers place on business and farming being conducted ethically and sustainably.
That seems to be the message of the story of South East Queensland milk producers the Dennis family, who have turned their back on the big processors and retailers in the wake of dollar-a-litre milk.
In a bold move, they will pasteurise, homogenise and bottle milk on their farm and distribute it to local stores in their region under their own Scenic Rim 4 Real Milk label, which comes with a host of guarantees that dollar-a-litre supermarket milk simply can’t match.
Low food miles, minimal processing, a transparent and sustainable supply chain, farming practices focused on animal welfare and elite freshness is what customers are purchasing with 4 Real milk.
Greg Dennis, his wife Trish, parents Darrell and Brenda and uncle and aunt Ray and Rose, milk 230 Holsteins by robot under a pasture-based system at Tamrookum, 90 kilometres west of Brisbane.
They have long supplied Queensland’s Parmalat but when farmgate prices dropped 25 per cent to below their cost of production on the back of cheap supermarket milk, the Dennis family realised they had to make drastic changes to stay in the game.
“We’ve been milking for four generations and while investing a million dollars on an on-farm processing factory might seem a big risk to anyone looking in, to us there was no other choice,” Greg Dennis said.
“We’d already made every possible efficiency on farm.”
The 18 metre by 18m processing shed will have a staff of five and bottle 7000 litres per day in peak season (spring).
4 Real milk will be sold in one and two litre plastic cartons and 750ml glass bottles in both homogenised and unhomogenised versions and full cream and low fat.
All milk has now been allocated – 60 stores all within a radius of around 100km of the farm have signed up, ranging from Super IGAs who will take up to 400L a day, to corner stores taking 20L.
The 2L products will retail for $3.85.
“We have done all our numbers to be viable if we never grow beyond our own milk, however, the factory can process a slightly higher volume and if demand grows we will look to buy milk from other local producers, paying a price at least 10 per cent above current major processors,” Mr Dennis said.
They had no trouble selling the milk – in fact, many retailers contacted them.
“The timing was good,” Mr Dennis said.
“Anti-big business sentiment is strong across food sectors and in the dairy industry in particular, consumer support for the farmer and demand for fresh, local produce is at an all-time high.
“A strong part of our message is a fair cut for all in the supply chain and we believe there is strong public support for those ideals.
“We want the corner store to have the same opportunity as the bigger supermarket so we won’t compromise on our wholesale price.
“We are saying $1/L milk is not sustainable and so we won’t compete against it. Instead, we are offering fresh milk that comes with ideals that we believe people will place value in.”
On the question of whether the newly-formed company might ever be for sale, Mr Dennis said the motivation has not been to make millions.
“Our purpose, number one, has been to save our farm. Number two, it has been to take some steps towards restoring stability to dairying by offering a fair farmgate price.”
