South West Dairy Group seeking farmer-suppliers in Victoria’s Western District

A new dairy group in southwest Victoria that wants to resurrect the co-operative model in the wake of Murray Goulburn’s demise is seeking farmer suppliers.

DAIRY: SW Dairy Group New dairy co-operative - South West Dairy Group - is being formed in the Cobden region. Brad Couch is the new chief, joined by directors Adam Jenkins and Duncan Morris. Pictured: Adam Jenkins and Brad Couch PICTURE: ZOE PHILLIPS

REWIND two decades and the dairy co-operative model was as commonplace as the video cassette in regional Australia.

But in the Netflix era of 2020, the co-operative model has fallen by the wayside with the dairy’s decision-makers based in far-flung Auckland, Montreal, even Hohhot in inner Mongolia.

A new group in south-west Victoria wants to change that.

South West Dairy Limited — also known as SW Dairy — is seeking farmer suppliers after going public with the concept a few months ago.

Farmer-suppliers would need to purchase 10,000 shares at $1 each although there will be differences with the previously established co-operative model.

Once operational, no dividend will be handed shareholders with profits would returned in the milk price instead.

Former United Dairyfarmers of Victoria president Adam Jenkins is one of the founding directors of the group, alongside former Murray Goulburn director Duncan Morris.

Mr Jenkins said the SW Dairy group did not set out achieve the highest milk price but the best one for smaller and seasonal farmers.

“We’ve set out with the objective of putting farmers on an even playing field — that one dairy farm isn’t dominated by another due to scale or output,” he said.

“There’s a frustration out there with the status quo from small to medium farmers. In our constitution, it’s written in that we have the same milk price for every member.

“This model will give farmers looking to establish themselves in the industry a window of opportunity as well that’s not been offered (by other outlets).”

Mr Jenkins said a few milk co-operatives had made in-roads in recent years, citing Mountain Milk Co-operative led by North East Victorian farmer Stuart Crosthwaite as an example.