Dick Smith wants Norco ice cream

Dick Smith Foods will market a range of Norco premium ice creams Australia-wide in a deal that could increase Norco ice cream sales by two million litres per year.

Under the agreement, the Australian entrepreneur’s label will feature on two-litre tubs of chocolate and vanilla ice cream. Dick Smith Foods general manager, Cres James, told The Echo that he expects the ice cream to be on supermarket shelves by the end of this month.

Based on the success the company has had with other lines, Mr James believes sales could top more than one million units in the first year. Dick Smith Foods, which aims to reduce the number of foreign-owned food companies in Australia, has already recorded sales in excess of $20 million in four months. Mr James said that ice cream was not on the company’s agenda when Norco approached them several months ago.

“We were really looking at products with a more stable shelf life, but when Dick heard about the problems faced by Norco and its farmers, he decided to fly to Lismore and try the product,” Mr James said. “And what he discovered was that Norco’s premium ice cream is the best in its category.”

Mr James said Dick Smith Foods decided to market only the premium range because it did not want to compete with Australian-owned companies marketing generic brands. “While the purpose of Dick Smith Foods is to provide Australian-made products, we are not in the business of competing with a local company that already produces that product,” he said.

Norco general manager Bernard O’Brien and chairman Greg McNamara were delighted with the descision, which is a major win for the beleagured dairy co-operative. Mr O’Brien said Norco already produced more than 30 million litres of ice cream a year. The news comes on the heels of last week’s announcement that Norco is seeking a Heads of Agreement with Australian industry giant Dairy Farmers.

Mr McNamara said the proposal was the first step in a further divestment and restructuring program for the company, including the sale of some dairy manufacturing assets, and the rural stores, which are seen as outside Norco’s core business. Any sale would not affect Norco’s fresh milk joint venture with Italian diary giant Parmalat under the Pauls brand.

However, the plan became more complex following Monday’s announcement of merger talks between Dairy Farmers and National Foods, the company that began a price war by supplying cheap milk to Woolworths.

“I think it’s fairly obvious that National Foods will make a deal with Dairy Farmers within the next three weeks and possibly by the end of this week,” Mr McNamara said. “If that happens, the sale of any Norco assets to Dairy Farmers may depend on whether National Foods has similar facilities in the same area.”

- Dave Fawkner

Dairy Future Uncertain for Boys

Would-be dairy farmers Jono and Bryan at last Thursday’s picket of Woolworths.

Life didn’t hold much for Bryan and Jono a year ago. They’d been kicked out of school, were living on the streets and despaired of having any sort of real future. In short, they were perfect youth-suicide material.

Then they heard about a traineeship scheme that has allowed them to find employment on local dairy farms.

Despite their difficulties, the boys come from fairly typical North Coast backgrounds – they grew up in traditional rural communities, love animals and are not afraid of hard work. Now they’re in an environment they enjoy, gaining accreditation and learning something new every day.

“We’re milking morning and night, helping with the calving, using the tractor to prepare pasture and carry feed, and learning about the correct use of farm chemicals,” Jono said. Bryan and Jono’s jobs and training are the first steps for them to become farm managers in the future.

But a milk-price war, ongoing problems affecting Norco, and the uncertain future of the local dairy industry mean that things are beginning to look as hopeless as when they were living on the street. The truth is that there may not be a North Coast dairy industry to manage by the time they are experienced enough.

Both boys say they have tremendous respect and concern for their boss, who was left to run the farm after her marriage broke up. They say her determination and perseverance is an inspiration, but they’re not sure if that’s enough. “Last Monday we watched the next door neighbour sell his herd and walk off his family farm,” Bryan said.

So the boys decided to head for Lismore last Thursday to support the picketing farmers, believing that their own future is tied to the future of the group. With so much pressure on young shoulders, it’s understandable that one of the boys became verbally agitated when Police ordered the picketers from the shopping centre during the protest.

His frustration led to him being placed in a hot police car for a 45-minute cool down, before being told he would be cautioned over the matter. “I know the arresting officer,” a Woolworths’ customer, clutching a carton of Norco milk, told the picketers as he left the building. “He grew up in a local town with an economy built around the dairy industry. He ought to hang his head in shame!”

- Dave Fawkner