117-year-old Burnett dairy Central Queensland Dairy Fresh forced to fold

One of Queensland’s oldest dairies is closing but not before its councillor owner blames a bitter battle with another farmer and major milk company.

Central Queensland Dairy Fresh farmer Robbie Radel said he could not understand why Lactalis would not accept them as a supplier.

A shattered farmer claims a dishonoured “handshake” deal contributed to the closure of a century-old family-run dairy.

After 117 years in business Central Queensland Dairy Fresh, which is partly owned by North Burnett councillor Robbie Radel and located at Coalstoun Lakes, posted a fiery announcement on Facebook saying the owners had been left with no choice but to shut.

The post claimed a “leap of faith” taken five years ago to step away from the safety of supplying milk to the country’s major milk processor had contributed to their downfall.

“That decision to start our own brand was more or less forced on us by Paul’s Parmalat (now Lactalis) paying such a low farm gate price that it was either do our own thing or slowly go broke under their payment scheme,” Central Queensland Dairy Fresh said on Facebook.

“They took their opportunity to screw us hard when we gave them notice that we were leaving them to do our own brand and then continued to actively work hard against us in the marketplace...”

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Central Queensland Dairy Fresh

French conglomerate Lactalis purchased Parmalat in 2011, and in doing so acquired Paul’s milk.

Central Queensland Dairy Fresh claims things took a fatal turn when a proposed deal with Gympie-based processor Cooloola Milk Co, which had been processing their milk since 2019, did not go ahead.

Speaking to this publication on Thursday, Mr Radel claimed his company and Cooloola Milk struck a “handshake deal” for the latter to buy the processing plant for $6.95 million.

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“We came up with the agreed price, and thought everything was good, I’ve got the email there from the agent saying ‘congratulations on having your offer accepted,’” he said.

“I waited six days and got back to the agent and said ‘mate, I haven’t got a contract to sign yet’ and then he rang me mid morning the following day and said ‘they’ve had a change of heart, the walk-in walkout offer is no longer accepted, they want $8.3 million.’”

Cooloola Milk was contacted for comment, but did not respond to questions.

Central Queensland Dairy Fresh farmer Robbie Radel at the Nourish Cafe Bundaberg farm tour on Friday, October 4.

In a desperate attempt to remain afloat, Central Queensland Dairy Fresh reached out to smaller dairy companies, including Norco, Bega and Dairy Farmers, though none had trucks travelling past the Coulstone Lakes farm.

They then reached out to Lactalis, in the hopes of once again supplying the major processor.

According to the company, the initial discussions with a field officer were looking good, with the run increasing the viability for the major business.

“However, I received a text message – yep, all class – advising that ‘we are not prepared to take you on as a supplier’ then stonewalled me with no sign of any further kind of correspondence.”

The fifth generation family business, founded in 1906, shared in the post: “f--- big business and their seeming determination to screw the little guys and farmers”.

Mr Radel said he saw the writing on the wall a few weeks ago, and the family business had been working towards selling and relocating their 170-head dairy herd.

While the generational farm will remain in the family’s hand, they said they will now turn to crop farming, grateful for recent rain which has kept the ground alive.

Mr Radel spoke of the positives that came from being forced to transition from dairy into crops, and said he would be able to spend more time with his family.

“I have to look for the silver lining, and I tell you it has been a real struggle to find one, and for me it's going to be the fact that I’ll be able to spend more time with my kids, I’ll get to school events, I’ll see them on weekends, I won’t be working 110 hours a week,” he said.

Central Queensland Dairy Fresh

The company was also grateful to the ongoing support of the 56 Wide Bay Burnett businesses they have supplied over the past five years, all of which are now forced to find alternative suppliers for their milk and dairy needs.

“Unless a business has closed down, we have never been in with a business that no longer support us, we have never lost a customer,” Mr Radel said.

“That’s something that I am really proud of.”

Several companies including The Pocket Storehouse took to Facebook to share their own heartbreak over the news.

“We’ve lost another Dairy Farmer (closing), next week will be the last week we can love using Central Queensland Dairy Fresh milk in our baked goods and coffee/tea,” said The Pocket Storehouse.

The owners of Cafe Delora Delights shared their own disappointment at the news, and called on locals to support local business no matter the cost.

“Big corporation will not stop at local farms to pick up on there way past and closings the processing plant soon all our farmers will be gone and then what your foods perhaps we need to think Aussie Aussie and step up,” they said.

Lactalis responded to the comments made by Central Queensland Dairy Fresh on Facebook and said they were aware they were one of many dairy processors the company had approached.

“At the time that the inquiry was made to Lactalis on 17 July 2023 we had sufficient milk to meet our requirements,” a spokesperson said.

“Under the Dairy Code of Conduct we are obliged to publish our Milk Supply Agreements, by 2pm on 1 June and have the Milk Supply Agreements finalised with each of our farmers by the start of the new milk season commencing on 1 July.”