Norco is Australia’s oldest and last operating 100 per cent farmer owned dairy co-operative. Based in the Northern Rivers region of New South Wales, it has seen its fair share of challenging conditions, most recently the catastrophic, biggest flood in modern Australian history in February 2022.
Norco CEO Michael Hampson told Food & Drink Business the scale of the damage was significant.
“The total cost to the co-operative is estimated to be well over $100 million. We remain incredibly grateful for all the support and funding we’ve received over the past twelve months, which has enabled us to rebuild the facility and safeguard employment opportunities for our workforce,” Hampson said.
Through the jointly state and federally funded Anchor Business Support Grant Program NSW, Norco received $34.7 million towards its flood recovery.
As the co-op builds a more flood-resistant ice cream production facility to help it withstand whatever catastrophic climate event comes its way, Hampson said it wasn’t the outcome wanted. He said they did the sums and knew the co-op could survive without the ice cream operation, but it was whether Lismore could survive without it when it was such an integral part of the town that made the decision.
“This facility drives a significant amount of economic activity within the community and we’re also proud to be one the region’s biggest private employers. So, our focus remains on getting the facility up and running as soon as possible so that we can welcome back our workforce and start generating greater economic activity for the region, which will in turn provide a confidence boost for other small and medium businesses in the area,” he said.
Hampson said there have been unexpected delays due to global supply chain issues on key electrical equipment but expects to commission the first production line in August, as well as introduce new products to the market.
Once production begins, the 140 roles at the facility will return in a phased program.
“It has been a challenging year for our team members given the uncertainty that surrounded the ice cream factory, which is why we’ve been working incredibly hard to safeguard the future of the facility and provide clarity and certainty to our workforce.
“With that said, I want to acknowledge the broader Norco workforce, in Lismore and beyond, who have been working tirelessly on many different aspects of this rebuild process. It is because of their hard work and sheer dedication that things have tracked so well, and we’re inching closer to the reopening later this year,” Hampson said.
dairy co-operative (Source: Norco).
For the co-op’s farmer members, it was also a difficult year, with Hampson saying they remain focused on doing “absolutely everything we can” to support them.
“Last year we were proud to have delivered record breaking farm-gate milk prices, which not only helps them feel valued for the work they do, but also helps to ease any financial burdens they may be experiencing because of the floods or rising input costs.
“We also launched an innovative ‘cow financing’ scheme which provides financial support to farmer members to purchase lactating dairy cattle to boost milk production on farm. Our farmers are already reaping the benefits, and with $2.5 million in funding delivered in less than four months, the program has already helped to address supply issues that have been felt right across the sector,” he said.
The co-op also set up a new employee assistance program for members to talk to a farmer specifically trained in crisis counselling for emotional and psychological support.
“Lismore is Norco’s heartland and has been a part of the fabric of the community for 128 years, so we wanted to ensure that the co-op was set up for another 128 years of success and community contribution.
“I am also very driven to both support and deliver value to our incredibly resilient and hardworking dairy farmers, and anything we can do to increase farm gate milk pricing (for example) to help offset the pressures of inflation and rising input costs, we will do to best support our farmers.
“Equally, anytime a customer chooses to buy Norco products, every dollar goes back to supporting and benefiting our farmer members. So, anything we can do to create market opportunities and boost commercial performance for our farmers, we will also work exceptionally hard to do and achieve,” Hampson said.
It is that focus that has seen Hampson lead the co-op into new channels that on first flush might seem unusual.
In July 2021, precision fermentation start-up Eden Brew was launched with the mission of creating dairy milk without the cow. Norco was one of three partners behind the initiative with venture capital business Main Sequence and FMCG specialist Jim Fader.
At the time, Hampson said the co-op’s involvement was about being at the forefront of innovation and food science, building scientific expertise, and building a secure and sustainable future for its 292 dairy farmer members.
Norco farmers are shareholders in Eden Brew, so profits will return to them.
“Norco has been producing award-winning dairy products for 126 years. Our involvement in Eden Brew as a co-founder provides us with the opportunity to access new, cutting-edge technology, educate and engage our people around new ways of looking at dairy and protein development, and developing alternative revenue streams for our farmer members so that Norco can continue to provide value to its members for another 126 years,” Hampson said.
Which brings us to March this year when Norco launched its first alternative milk products – Norco P2 Pea Protein and Oat Mylk.
Norco general manager Manufacturing, Ben Menzies, told Food & Drink Business the main strategic drivers for Norco exploring the category were its customers’ needs and wants, and creating expanded market opportunities for our farmers members into plant-based milks.
“The research that backed our decision to expand into plant-based milks was that 40 per cent of dairy consumers incorporated plant-based milks into their diets, 10 per cent of consumers avoid dairy due to various dietary constraints, and more than a third of Norco’s loyal customers also shop for alternative milks,” Menzies said.
The co-op wanted to bring more products to market, which would see the proceeds stay in Australia and support local farmers.
“Our co-op members support the launch into plant-based milk alternatives, as it creates added value through the expansion of our product portfolio with all proceeds going back to our farmers.
“Diversification is key to best supporting our co-op members into the future, whilst also continuing to offer consumers award-winning, high-quality milk even if it doesn’t contain dairy,” Menzies said.
Norco’s P2 Pea Protein Mylk has the same protein, calcium, and creaminess as full cream dairy milk. Designed to deliver the dairy benefits that other plant milks lack, it is free from gluten, soy, nuts, and lactose, and delivers a “nutritional punch” of 8.3 grams of protein and lower sugar content per serve than full cream dairy milk. It’s Oat Mylk is high in calcium and low in sugar.
From idea through to research, product development, and tasting, to the final product took 18 months.
The alternative milks are made at the co-op’s Labrador facility on the Gold Coast, Queensland, which had capacity to house the new equipment required.
The co-op chose HDPE for the bottles because of its widespread use for milk and dairy beverages, its recyclability, and ability to efficiently run through its manufacturing facility.
They have a low-density polyethylene (LDPE) plastic wrap label, which can be recycled with soft plastics, once that scheme is back up and running. It also provides UV protection, which helps keep the milk at its optimal while also providing space for more thorough communication, particularly, Menzies said, that the range is free from nuts, soy, and gluten.
Menzies said, “We’ve been making award-winning dairy for 128 years, so we know a thing or two about how award-winning milk should taste. Because no matter how it’s made – or what it’s made from – we want to give milk-lovers the milk they deserve, even when it doesn’t contain a drop of dairy.”
