The Challenges And Triumphs Of Dairy Farming In Australia

The Challenges And Triumphs Of Dairy Farming In Australia

Aug 16, 2024Jonathan Englert

Gippsland Jersey is one of Australia’s independent dairy farmers, and has been turning heads recently for speaking out about the challenges that farmers face with the supermarkets. But the farmers behind Gippsland Jersey are also deeply committed and passionate about what they do, and the quality of their product speaks for itself.

That is why they have won awards for being the best milk producer in Australia. 

We sat down with Sallie Jones from Gippsland Jersey to chat through the great work that they do, and some of the challenges that they – and other farmers – face in the market. 

What inspired you to start up Gippsland Jersey?

Sallie: I grew up on a dairy farm, and in the 80s, my dad who was also a dairy farmer, had to work off-farm to supplement the income. He started making ice cream and opened an ice cream shop in the tourist town. We all helped out, either milking cows, making ice cream, or serving it. My dad was very entrepreneurial and always stood up for what he believed in, particularly about farmers needing a fair price for their milk. 

Unfortunately, Dad got sick and, after battling depression, took his own life in 2016. To channel my grief, I wanted to create something positive. During the dairy crisis, my friend Steve, who is also a dairy farmer, was losing faith in the industry. So together we decided to start Gippsland Jersey. Within three months, we had milk in a bottle and sold 5000 litres at a local Farmers Market. The community's support has been incredible.

It must be difficult given the cost-of-living crisis and the perception of milk as a basic commodity. How do you convince consumers of the value of your milk?

Sallie: We know not every person is a Gippsland Jersey customer. Our customers are the conscientious shoppers who are specifically interested in either shopping Australian-owned and/or products that promote good health. Jersey milk has the A2 protein, making it suitable for people with sensitive stomachs. 

With regards to cost, we’ve seen many A2 milk customers switch to our brand because it's more affordable. However, we also recognise that some people can't afford our milk and have to opt for cheaper options. 

Given the challenging relationship with big supermarkets, what distribution options are open to you?

Sallie: We’re seeing more home deliveries and increased sales through IGA supermarkets. People are trying to find alternatives to big supermarkets. Online deliveries that leave the milk at the doorstep are fashionable again - it’s almost like going back to the days of milk delivery and those glass bottles – if anyone remembers those!

Have you explored distribution through cafes and restaurants as well?

Sallie: We have, but that’s also challenging. Cafes are tight on costs, and we’re about seven to 10 cents more per cup of coffee. However, some conscientious cafes test multiple milks to find the best match for their coffee beans. We actually hold an on-farm barista day to promote the importance of milk quality to the quality of the coffee. Despite the psychological barrier of a higher cost per cup, we believe our milk makes a better cup of coffee, and so there is growing interest in what we do.

What’s next for Gippsland Jersey?

Sallie: We need to tighten up some internal things due to rising costs. We’re planning to move our processing factory closer to Melbourne to make our business more efficient. We crowdfunded to get my dad's old milk factory going, raising $120,000 in three weeks. It was an incredible vote of confidence from our community. We want to value-add more products like butter, cultured sour cream, pouring cream, ghee, and possibly cheese. 

The dairy industry is in decline, and we’re concerned about the future. We’ve lost 30% of our farmers across Australia due to various reasons, including pricing issues and the challenges of the lifestyle, so we need to do something to preserve the industry for the future, otherwise we’ll all be relying on milk imported from overseas.

It sounds like there’s a lot going on.

Sallie: Absolutely. We also have a milkshake caravan, which is very popular. We want to keep creating value-added products and ensure our farmers get a fair price for their milk. It’s about more than just surviving; it’s about thriving and supporting our community.

Gippsland Jersey highlights the sheer passion that drives many of Australia’s farmers. Despite the challenges – many of which both big business and goverment really could help them out with – local communities are behind them, and they continue to innovate and push forward, ensuring that the legacy of their hard work and passion is not only preserved but also celebrated.

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