Co-op's Butter Market Breakthrough

28/12/01
Western Australia has sent its first butter exports to Indonesia.
State Development Minister Clive Brown said the recent shipment was the latest success of Challenge Dairy, the Capel-based dairy farmers' co-operative established in June this year with State Government support.
Mr Brown said the 20-tonne container order could lead to a multi-million dollar market, both for Capel butter and cheese.
"Challenge has joined forces with one of Indonesia's largest food distributors - PT Sukanda Djaya Group - for a bulk shipment of South-West butter," he said.
The Minister said the market breakthrough was gratifying to the Government, which had provided both financial support and advice to the company.
"Challenge Dairy was encouraged to explore the Indonesian market by the Department of Industry and Technology's (DoIT's) Jakarta trade and investment office, which arranged contact with Sukanda Djaya," he said.
Mr Brown said that orders such as this indicated that the Indonesian market - an important one for Western Australia - was showing signs of recovery.
Challenge Dairy director David McIntyre said the success of this shipment could lead to similar orders several times a year. Indonesia was also a good prospective market for Capel cheese.
"PT Sukanda Djaya Group - that's Diamond Cold Stores - is well established and respected, distributing a range of food throughout the country," Mr McIntyre said.
"We're very hopeful about future prospects for dairy foods. We are particularly appreciative of the work of DoIT's regional trade office, which not only encouraged us to look at the market, but also arranged discussions with Diamond Cold Stores in Jakarta."
Mr McIntyre said the co-operative exported skim milk powder, butter and cheese to several Asian countries, but using agents, not selling directly, as in this case.
Challenge Dairy was created to provide dairy farmers with a greater degree of ownership of their product throughout the supply chain following the restructure of the WA dairy industry.
It was assisted by a $10million State Government grant in June this year.
Minister's Office - 9222 9699
David McIntyre of Challenge - 9386 9155