Changing the topic onto margins on exports for CDC I notice that...

Changing the topic onto margins on exports for CDC I notice that China/Importer pays the export costs........if anyone cares....

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^{Camperdown milk China-bound}

IT HAS been a busy week at the Camperdown Dairy Company in south-west Victoria.

The factory flew its first load of fresh milk to China, and also started processing and packing Farmers’ Own brand milk for Woolworths.

Chief executive Peter Skene said 4000 litres of milk was flown to Shanghai on Friday, with a similar amount to go this week, increasing to 16,000 litres from next week.

The Camperdown company becomes the second processor supplying fresh milk to China, alongside New South Wales co-operative Norco.

Warrnambool Cheese and Butter attempted to break into the market about four years ago but the project was abandoned due to bureaucratic difficulties in distribution of the milk in China.

Mr Skene said Camperdown Dairy Company had isolated itself from such problems.

“Our responsibility ends at Tullamarine — from there the responsibility and the risks are with the importer,” he said.

“Our obligation is to deliver the milk to the airport.”

Mr Skene said he was not privy to all the importer’s arrangements but he believed the milk retailed for $8 per litre in Shanghai.

He estimated the cost of transport at $1.50 to $2 per litre, a cost borne by the importer.

He said the milk arrived in Shanghai 48 hours after being delivered to the Camperdown plant.

“We have a very streamlined supply chain in place that ensures the milk is very fresh when it arrives on supermarket shelves in Shanghai.”

Processing of Farmers’ Own milk has also just started.

Victoria becomes the third state to roll out the brand, which is exclusive to Woolworths supermarkets.

The milk is supplied by three dairies in the Carlisle River area of the Otways, with each contracted directly to Woolworths for three years.

Camperdown Dairy Company’s role is purely to process and package the milk.

Mr Skene said the factory’s existing capacity could cope with the new contracts, although he could see a time when an upgrade would be necessary.

“It will be a relatively easy thing for us to do,” he said.

“We don’t need a lot of space because our product turnover is fast — we don’t have a lot of product sitting in a warehouse.”

read:http://adf.farmonline.com.au/news/magazine/industry-news/general/camperdown-milk-chinabound/2719438.asp