WITH “milk price wars” raging across the country, it might seem like an unusual time to launch a new processing factory and branded milk range.
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But that’s exactly what freshfood delivery company, Aussie Farmers Direct, has done.
The business, which has increased its revenue by 150 per cent in the past 12 months, opened the doors to its $5 million milk plant at Camperdown in Victoria in mid-January.
It is now home to the brand, Aussie Farmers Dairy, which will be added to the company’s long grocery list and delivered straight to the door of the consumer.
Low fat, no fat and whole milk will soon be available to Aussie Farmers Direct’s 100,000 customers in one-, two- and three-litre containers.
In fact, production is expected to hit the 20 million litre mark in the next 12 months and 40,000 million annually in the long term.
Chief executive, Braeden Lord, says he’s not worried by the looming threat to branded milk in Australia.
“To be honest, I think it’s been a great time to launch our own milk, because it really sets us apart,” Mr Lord said.
The milk’s biggest drawcard was it was Australian made, owned and sold at a competitive price, he said
“It is an amazing coincidence that at the same time Coles cut the price of its home-brand milk, we were planning to launch our new milk,” he said.
“I’ve seen little impact on our business though.
“I think our customers are more loyal as a result of the supermarket wars.
“They see it as market bullying.
“In particular, our customers value quality, freshness and the Australian farmer.”
While Mr Lord would not go into details about the company’s pricing structure, he confirmed the company’s 30 suppliers were paid a premium over the current Victorian farmgate price.
“We are happy to pay the farmer a premium price to secure supply and that will continue in the long term,” Mr Lord said.
“That relationship between farmer and processor is so important.”
He said the establishment of the factory at Camperdown was one way of guaranteeing both customers and suppliers that Aussie Farmers Direct would remain Australian owned.
The company is currently working with a small group of farmers within 30 kilometres of the plant, with that number expected to grow.
“It has been very convenient for them and rewarding for us. But as volumes grow we will be looking for additional supply,” he said.
Mr Lord said the company’s long-term focus would remain on fresh milk with no plans to diversify into other dairy products at this stage.
