Dairying in the Jamberoo Valley has been dealt another blow with the news that Picton milk processor Country Valley, the promoter of Jamberoo Valley Milk, has gone into administration.

Steven Downes, one of the Jamberoo farmers who originally signed up to supply milk to Country Valley, became concerned with the situation earlier in the year.

He made the decision to stop milking rather than take on the expenses required for the coming year, and is now working off-farm to bring in income.

“Several farmers tell me they have had $50-$70k worth of milk not paid for, and as that was a month ago it might be more now,” says Steven, noting there isn’t a lot of margin in that income.

The farmers, who prefer not to comment, are understood to be trying to recover their money, but Steven says while the amount he is owed is significant it isn’t worth the legal costs and headaches. Country Valley declined to comment.

Country Valley’s John Fairley was keen to leverage off the goodwill for local farmers, launching Jamberoo Valley Milk last June.

However this branding strategy was developed without the involvement of the local farmers, despite giving that impression.

Jamberoo farmers weren’t paid extra for the premium price charged for their milk, but continued receiving the contracted amount.

“It was never a cooperative of local farmers, it was a marketing opportunity,” says Steven, who was annoyed from the start by the promotion which had people congratulating him on the initiative.

“This was an initiative that was supposed to support local dairy farmers, and it is gut wrenching that it has ended up doing the opposite, with one farming stopping milking for the interim and perhaps forever,” says local food champion Alan Smith.

“However, I will continue to support these types of initiatives to encourage the local farming community otherwise our green hills will be gone.”

A new brand, Sydney Milk, was launched by Country Valley as recently as February.