Record organic milk price
Fonterra's organic farmers received a record milk price of $10.80/ kgMS last season.
Two years ago, while looking for the best butter in a New Zealand supermarket, Cullinane was forced to settle for the Danish product Lurpak. He says he found this ridiculous; in a country famed for quality pasture-fed milk he was forced to eat foreign-made butter.
He decided to do something about this: in a quest to create the world’s best butter he set up a little Dutch churn in a converted shipping container at Lewis Road, Bay of Plenty.
Cullinane’s company Lewis Road Creamery started by making ‘artisan’ butter – small quantities hand made with organic milk. Then followed premium butter with conventional milk and last year organic milk and cream products. All organic milk initially came from Jersey herds but the company switched to mixed-herd produce due to supply constraints.
Four months ago Cullinane was back in the supermarket and saw a few bottles of flavoured milk beside the fresh milk range. He decided to introduce flavoured milk while one day watching the dairy section in a supermarket.
“Next door to fresh milk is flavoured milk packed in 2L bottles but I thought ‘they are not the finest examples of what New Zealand dairy can offer’,” Cullinane told Rural News.
He floated the idea with Whittakers and within a month the idea of making chocolate flavoured milk was conceived.
Made from organic New Zealand milk and Whittakers chocolate, the four-month old Lewis Road Creamery product has taken the retail sector by storm. The first week’s production of 1000L sold out within days; today the company makes 40,000L of chocolate milk a week and consumers are clamouring for more.
Cullinane believes the 100% New Zealand product has hit the sweet spot with consumers. “We’re thrilled with the feedback; 99.9% of consumers speak glowingly about it.”
He gives credit to Whittakers, Porirua, for supporting the venture. Lewis Road Creamery chocolate milk is available in 300ml and 750ml bottles.
All Lewis Road Creamery products are made by Green Valley Dairy at its plant at Mangatawhiri, south of Auckland.
The success of chocolate milk is straining the company’s organic milk supply, causing it to “walk over thin ice”. Demand for organic milk products locally and for export is greater than milk supply.
Cullinane says the company is working with Green Valley to maintain organic milk supply year-round.
“There is no doubt that in the future of New Zealand dairy there is a big role for value powders… but there is also a huge opportunity for quality products. We believe organics is part of the picture; our products have proven that.”
Green Valley general manager Corrie Den Haring says the chocolate milk launch has “gone well beyond expectations”.
He confirms the strong demand is putting more pressure on a limited organic supply base. “Domestically and for export, demand is greater than supply; however price expectations are unrealistic from the supply side.”
He wants more done to promote organic dairying in NZ considering public concern over sustainability and the environment. “Organics could and should be seen and embraced as one of the models that alleviates general consumer concerns,” he says.
