Rightfully there has been an outcry over the forthcoming closure of the Pauls Milk factory in Rockhampton and the loss of local jobs. The globalisation juggernaut will roll on nevertheless, with more centralisation of production and reduction in associated jobs. Will this closure be enough to awaken another potential juggernaut that could see the local milk factory come back to life – localisation? Could as one milk company leave the building another move in?
CQ United Dairies Pty. Ltd., who sell Central Queensland Dairy Fresh, state on their website, “Our long-term goal is to process our own milk in Central Queensland for our farmers.” Currently it is being processed in Cooloola. I imagine this would be a huge financial step for the CQ dairy farmers to currently make. However, if the energy exerted on the outcry over the closure was now wielded towards gaining more public support to buy the local milk that gave the owners the confidence to bite the bullet, could not that be the silver lining on the current dark milk cloud.
Not just to get people to say yes, they would buy the milk instead of Paul’s, but to get them to sign a pledge saying they will actually make Central Queensland Dairy Milk their preferred regular choice. Much like how Emu Park got itself back a bank.
When the last financial institution closed in 2003 the community of Emu Park had a couple of options, express their disappointment but accept the situation, or work out was needed for them to get their own bank. They chose the latter, which involved extensive door knocking over many months to get the required signed pledges of support before the Emu Park Community Bank branch of the Bendigo Bank opened in 2005. A decision that has seen not only local jobs created, but around $1.8 million re-invested back into the Keppel Coast.
Do we feel strongly enough about the Paul’s closure to do something likewise? At some point Rockhampton has got to say enough is enough, and instead of just words being expressed in the media, positive action is taken towards restoring what is lost. But, just like the business decision to close the milk factory, there has to be a strong financial case for opening the replacement business. A case that clearly demonstrates the willingness for locals to continually pay more, if necessary, for the local product.
Won’t go that far! Probably, if the price was the same or close enough! And if it was as convenient to buy! Sorry, in this age of globalisation, internationalisation, centralisation and subsidisation if we don’t accept it you might have to pay more for the local product, the local producer is going to held out to dry by the national conglomerates until they can no longer last. The milk industry is an obvious example, but not the only one.
Admittedly, sentiment only goes so far, and such local businesses need to be somewhat competitive in order to at least maintain sustainable demand. However, just as importantly they’ll need to be transparent, in order for locals to believe they are not being ripped off with the premium they pay. Highlight what jobs are being created, what profits are made and how they are used. Perhaps invite locals (including workers) to own a part of the business, not just to get additional capital but generate more loyalty and advocacy. This is a lot harder than just offering Lactalis (the French owner of Pauls milk) tax-payer funded incentives and subsidies to keep processing in Rockhampton, but the die is cast and these discussions if held might just forestall the inevitable.
Would it not be better to spend this time and money with a business that wants to process their milk in Central Queensland? Is it time to awaken the sleeping juggernaut that is localisation, and if the closure of Pauls milk factory isn’t the catalyst for this, what is?