50k grant to help egg cooperative crack new markets

06 May 2014

A farmer cooperative representing one third of Victorian egg production is the first to benefit from the Victorian Coalition Government’s Food and Fibre Marketing Cooperatives Grants.

Minister for Agriculture and Food Security Peter Walsh visited Bridgewater Poultry Farm today, a member of the newly-formed Ausnovus Cooperative Group.

Mr Walsh said Ausnovus had received $50,000 from the Coalition Government to help cover costs associated with establishment, including business planning and feasibility studies, technical advice and legal fees. It will also help Ausnovus progress to a zero-waste management system with the establishment of a biodigester fertiliser plant.

“The Coalition Government is committed to assisting our state’s food and fibre businesses to increase their production levels and achieve greater market access, whether it’s domestic or overseas,” Mr Walsh said.

“By forming a cooperative, farm businesses can work as a collective rather than individuals when marketing and supplying their product. This provides greater bargaining power.

“Where one farm business on its own can experience fluctuations in production, a group of farms working together can ensure greater consistency of supply.

“This is appealing for major buyers such as supermarket chains and large international importers when they know there will be a consistent, quality supply of produce.

“I have set a target for Victorian food and fibre producers to double production by 2030 and supporting the establishment of marketing cooperatives will help to achieve that goal, by both opening new markets and reducing farm costs through bulk purchasing.”

AusNovus Cooperative Group consists of 12 egg producers with 1.5 million birds across Victoria. These producers account for about 32 per cent of the state’s total egg production.

“We are aiming to build the critical mass and volume of supply necessary for better market access, namely to major supermarket chains and food distribution companies, and act as a marketing hub,” AusNovus Business Consultant Shirof Khan said.

The Food and Fibre Marketing Cooperatives Grants of up to $50,000 will be available until June 2015 to eligible farm groups. The program is managed through Rural Finance.

This media release was published to the Premier of Victoria website, 30 April.