GLOUCESTER dairy farmers Wendy and Michael Fraser are the first milk producers in the State to sign up to a new deal with milk giant Devondale-Murray Goulburn (MG) since the company announced plans to secure supply in NSW earlier this year.
Devondale-MG is building a new milk processing facility in the western Sydney suburb of Erskine Park, which is due to begin processing approximately 100 million litres of milk annually from mid-next year.
In April, the company announced a landmark, 10 year partnership to supply Coles with daily pasteurised milk for its private label brands in Victoria and NSW from July 2014.
MG will also relaunch Devondale branded daily pasteurised milk in Coles stores in Victoria and NSW while Devondale cheese returns nationally to Coles shelves.
“We are impressed with what we’ve seen so far of Devondale-MG. We moved to MG firstly for the better milk price and secondly so that we could grow our business - something we hope MG helps us to continue to do in the future,” Mr Fraser said.
“We also really like the concept of a farmer-owned co-operative, where the profits go back to the farmers.”
Mr Fraser said previously he had been receiving as little as 13 cents a litre for his milk, which was stifling his business.
“Unfortunately we grew at the wrong time,” Mr Fraser said.
“We were producing 1.4 million litres a year, but last year had to cut back to 1.2 million because we were getting next to nothing for the extra milk.
“Now I’ll be getting upwards of 50 cents a litre for that milk.”
The Frasers built a new dairy shed four years ago and would like to grow their herd a further 10 to 15 per cent in coming years.
They are due to begin supplying Devondale-MG this month.