The independent dairy brand has experienced an unprecedented demand for its products after news broke that the major two milk processors Murray Goulbourn and Fonterra would reduce farmgate milk prices to below the cost of production for farmers in the southern region, that includes Tasmania.
We have enough milk to bottle, it’s just about getting it into stores
Ashgrove communications manager Anne Bennett said the phones had been running hot for the past few days to a week but said the increase in demand had spiked overnight. Ms Bennett estimated Ashgrove had a 30 per cent increase in demand for its products.
The company had to dispatch its truck to make “emergency milk supplies” to the North-West on Monday and was expecting to send it to the North on Tuesday.
Ms Bennett said if the demand continued, then Ashgrove could be in a position to take some local farmers “off the grid” and add some more farms to their “Ashgrove family” to supply them milk.
In the North Ashgrove has three trucks that deliver milk one or two times a week but with the extra demand Ms Bennett said she believed the trucks would have to fill out three or four times this week.
“Our customers are amazing, we have enough milk to bottle, it’s just about getting it into stores,” Ms Bennett said.
Many Coles and Woolworths supermarkets have been running out of Ashgrove milk to sell as consumers choose to buy local branded products over cheaper homebrand milk.
Ms Bennett said the demand for Ashgrove products began when Waleed Aly fromThe Project ran his piece on the milk crisis but said it had spiked in the past two days.
“We are loving it that our consumers are loving our milk, the great thing about our consumers is that they can drive change,” Ms Bennett said.
The swell of positivity comes after Cadbury also announced it would cut farmgate milk prices to Tasmanian farmers, joining cuts from Murray Goulbourn, Fonterra and Lion.
Murray Goulbourn announced earlier in the month that it would slash farmgate milk prices to about $4.75 per kilogram of milk solids (kgMS).
Fonterra quickly followed suit, announcing it would cut prices from $5.60kgMS to $5.