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Coinciding with school holidays, the Malanda Show was a big hit last weekend and made it the perfect time for QDO’s marketing manager to meet members coming in to watch the dairy judging.
Despite the sticky mess that was the Malanda Milla-Milla road gaining more publicity in the news than the Show, visitor numbers were good, and the winter drizzle didn’t keep the crowds from enjoying themselves.
Members were eager to discuss topics that are specifically pertinent in the North. The issue of oversupply and the freight levy being paid by Lion suppliers was raised by many frustrated members.
With a single major processor operating in Far North Queensland and a more seasonal supply than we see in South East Queensland, farmers are being held over a barrel with regards to farm-gate prices and a surplus freight levy paid to have milk transported south.
Lion is still investigating alternate uses or product lines for the 4 million litre oversupply, but no viable solution has been put on the table which means farmers are disincentivised to grow or even continue their dairy businesses.
From almost 400 farmers on the Tablelands prior to deregulation, there are now just over 50. The prediction that UHT milk may soon be the only option for Far North Queensland consumers seems a likely reality based on these figures.
However, the success and growth of Mungalli Creek’s biodynamic dairy range in South East Queensland markets shows that if a brand can have a unique point of difference, consumers are prepared to pay a premium. With some long-term planning rather than short-term thinking and an alternative perspective, brands are not necessarily confined to current markets and can grow.
Recent supermarket surveys conducted by QDO confirmed that socially conscious consumers do want to support local brands and those that are paying a fair price to farmers. Additional health or lifestyle benefits such as organic, biodynamic and A2 also continue to show growth.
QDO will continue to work with brands to help customers make more informed decisions and will continue to look at other market opportunities including a review of the viability and profitability of an export market from the North. – Brian Tessman, QDO