12/06/2024
Through a number of events that we participate in, weāve come to know Sally and the amazing hard working people behind the Gippsland Jersey brand.
Yet again, the big chains - in this case Coles - choose to drop another Aussie farm brand on its head because the margins donāt work!
Please take the time to read this - itās important. It does impact on you and your family. Think of what happens if we donāt have access to the quality produce from our local Aussie farmers ā¦
Pay Day for Dairy Farmersš„š¦šŗ
***NOTE: this is a good read (maybe 2-3mins)š
As we navigate through the aisles of our supermarkets, many of us are questioning the rising costs of everyday essentials. While paying $5.80 for a bottle of Gippsland Jersey milk may seem expensive, itās crucial to understand the real impact of these price changes on those who produce the milk. Dairy farmers across Australia are facing significant financial pressures, with many questioning their future in the industry amidst pay cuts of 10-16%.
**The Plight of Dairy Farmers:**
Reduced milk prices will mean that more farmers will be questioning whether they sell up or change what they do with their land. Despite the assumption that higher retail prices mean better earnings for farmers, the reality is starkly different. Many dairy farmers struggle to maintain their livelihoods, let alone invest in necessary bank repayments, farm upgrades, or retain their employees. It is a widespread issue affecting many family-run dairy farms across the nation.
**The Importance of Gippsland Jersey:**
Gippsland Jersey, started up in 2016 in response to the milk crisis. Steve Ronalds, a dairy farmer from Jindivick, was questioning his future in the industry unless he could work out how to take out the volatility of the ups and downs of the milk price. It's so stressful trying to run a business (because that's what a dairy farm is essentially - with a huge bank loan for the land) and not know what you're going to get paid.
Gippsland Jersey is a mum and dad-owned independent milk brand committed to paying a fair milk price to its now five suppliers, ensuring that their dairy farmers receive the compensation they deserve for their hard work and risk.
It's worth pointing out that Jersey milk āshouldā always be āworth moreā... Jersey cows are known for their higher milk components (20% higher in fat and protein). These cows are also more environmentally friendly, having a lower carbon footprint due to the above and also their smaller size (400kg compared to the 600kg of other breeds), plus their milk naturally contains the A2 protein, making it a healthier choice for many consumers.
However, despite its commitment to sustainability and fair pricing, Gippsland Jersey is facing challenges. The brand is being delisted from the majority of Coles stores due to the retailer's margin requirements and sales expectations. We are bitterly disappointed that Coles supermarket has a system that we believe doesnāt really work for little brands like us. Weāve tried hard but we just donāt have the big advertising budgets and profitability to āgo on saleā and drop our pants on giving them more margin and we certainly won't be going broke trying to appease them. This decision by Coles overlooks the broader impact on family farms and rural communities, which depend on the viability of local dairy businesses like Gippsland Jersey to provide jobs and transport, etc and more importantly you would think in giving consumers a choice.
(On a side note. A fairer system for them to have the same margin expectations on generic supermarket branded milk as the branded milks would have a much different price point in the supermarket)
**Supporting Local and Independent Brands**
Australia is home to around 26 independent milk brands, with most of the rest being owned by large multinational corporations. Brands like Great Ocean Road, Devondale, and Sungold are owned by Canadian company Saputo, while Pauls brands (and there are lots!) is under French multinational Parmalat. In contrast, Gippsland Jersey represents the heart of local, family-owned agriculture. By choosing Gippsland Jersey, consumers can directly support family farms, ensuring their sustainability and keeping rural communities vibrant.
**The Ripple Effect on Rural Communities**
The economic health of rural communities is tightly linked to the success of local farms. When dairy farmers struggle, the effects ripple through the entire community, impacting local employment, schools, and small businesses. With fewer farmers, the volume of milk produced in Australia declines, exacerbating the challenges faced by the industry.
**A Call to Action**
While supermarket giants focus on margins, it is up to us, the consumers, to make choices that reflect our values. By buying truly independent brands such as Gippsland Jersey milk, Maffra cheese, and other local products, we are not only choosing a superior product but also investing in the future of Australian dairy farming. We want to ensure that family farms remain sustainable and continue to contribute to our communities.
**Reducing Imports and Supporting Local Agriculture:**
In addition to individual consumer choices, there is a broader conversation to be had about reducing imports and prioritizing Australian-made products. This starts with consumers' buying habits and extends to clear packaging and potentially government regulation of imports. While Gippsland Jersey is committed to paying fair prices, the broader agricultural sector faces never changing challenges of fluctuating prices and costs. It is essential to recognize that we are coming off some of the highest prices ever seen in the industry, and while farmers' grievances are valid and indeed likely ,coming from scars from 2016 there needs to be a balanced perspective.
By advocating for policies that support local agriculture and reduce a seemingly increased reliance on imports, we can create a more stable and sustainable future for Australian farmers. This includes government intervention to regulate imports and promote local products, ensuring that farmers receive fair compensation and that rural communities continue to thrive.
Thanks for reading, praying for wisdom.
Co-founders
Sallie Jones & Steve Ronalds
