Milk companies trade milk between themselves . The milk that is...

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Dazz49

3 Posts.

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17/06/20

20:28

Post #: 45284054
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Originally posted by missinglink: ↑

Just wondering about the economics of sending milk from the SE of South Australia where the farms are located.
Naracoorte which is approximate location of the farms is 243 kms. to Jervois. There are many dairy farms within a 50km. radius of Jervois and Murray Bridge. Two years ago I went on a factory tour of the Jervois and Murray Bridge Beston facilities, I recall being told then that much of the milk used by Beston is sourced locally and that the milk from the farms was used by other factories in the SE of SA and into the SW of Victoria. There would have been some commercial arrangements in place to compensate for the situation.

Will Beston be paying a premium to bring milk the extra distance or will some equalisation arrangement be made.

The Jervois facility was originally built as a co-operative for the dairy farmers along the Murray between Jervois and Murray Bridge, I know that, as I had family members with a dairy farm near Jervois whose milk was processed at the Jervois factory . Over the years things changed and the factory became redundant, The dairy farms remain.

I am pleased that the company is finally concentrating on cheese production and making good use of the by-products. A good product, well priced and marketed is what we need for success.

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Milk companies trade milk between themselves . The milk that is contracted to bestons may be delivered to a factory near Mt Gambier, The Mt Gambier factory then supplies milk to bestons from dairies they have contracted near bestons factory. Saves milk from going up and down the highway. I took the opportunity to make a handy profit at 10 cents

BFC Price at posting: 10.5¢ Sentiment: Sell Disclosure: Not Held
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