Shaking my head today Murray Goulburn. Whose bright idea was this?

Fascinated by this story about the background behind what has to be one of the most poorly timed bizarre advertising campaign ever from Murray Goulburn (MG)

Via Mumbrella

Devondale rivals presented as fools in suits in new fresh milk push

Devondale takes aim at its corporate competitors as it makes its first foray into the fresh milk sector, with its latest campaign depicting its rivals as fools in suits.

The campaign ‘Takeover’, created by DDB Melbourne,  highlights Devondale as a farmer-owned business through a portrayal of how ‘corporate’ types operate a dairy. The ads show men in suits struggle to herd cattle with a mercedes and then milk them. It ends with the tagline “Some businesses have no business making your milk”.

Firstly lets look at poor timing. Never before has it been so imperative that MG be on good terms with their fellow processors as according to the Australian Financial Review (AFR) MG’s Sydney factory that will process NSW dairy farmers milk to fill their contract for Coles stores is

at least a month late and $30 million over budget

And even more catastrophic (according to AFR )

is that MG’s inability  to supply milk is leaving Coles scrambling to find milk.

Can you imagine the penalties in the Coles/MG contract for MG failing to meet the milk supply deadline. Scary enough to ensure that MG would have moved heaven and earth to find another milk processor to supply Coles with the shortfall and get them out of that highly embarrassing money gobbling disaster

Secondly lets look at bizarre. Surely bizarre doesn’t get any stranger than this? You need some-one to rescue you from a potential disaster whilst at the same time publicly and at great expense you are suggesting they are fools

Lets not forget just last week MG’s Managing Director Gary Helou ( see my previous post here ) was quoted in the Australian as saying

We (MG) are not farmers……..

According to the advertising agency

The campaign marks the brand entering the fresh milk sector after largely operating in the long-life milk sector for a number of years.

 

Well MG’s foray into the fresh milk market has certainly arrived with a whimper or should that be a snigger rather than a bang as far as ability to meet supply targets and deliver product to store. Would it be too cheeky of me to suggest it may just be the MG management team who are starring in their own adds. Yes far too cheeky but whatever way you look at it these adds are just poor taste whatever the background. No wonder the comments option has been disabled on Youtube???

Here is the portfolio for you to make up your own mind

This is what Charlotte from the UK says and I couldn’t agree more

Poorly thought out all round. This advert could be seen by those who do not know the history and its intention to mock its competitors as just a dig at the city people who buy their products. When everyone in the industry acknowledges the need to promote a positive images of agriculture and help to ease the apparent disconnect between consumers and how their food is produced, this appears to be doing the complete opposite with the farmer effectively shutting the gate on anyone that wears a suit to make a living.

What do you think?

Post Script: September 2014 Update.  Here is what the Advertising Standards Watchdog thinks. Visit here

 

 

Milking the supply chain formula

This post by Marian MacDonald Bring on the Cows demands a New Routine has inspired me to write a post about one of my favourite topics.

 How do we deliver affordable, nutritious, ethically produced food to Australian consumers and ensure that EVERYONE in the supply chain chain gets their fair share of the return on investment?

One way we (farmers) can do this is to own the the really big players in the supply chain and farmers have tried that.  Lets use farmer group Wesfarmers as an example.  Wesfarmers bought Coles and look how well that turned out for farmers Coles admits to threatening suppliers.

If we go back to Marian who is one of the many Australian dairy farmers who own the milk  cooperative  Murray Goulburn (MG) we have an example of farmers owning the other end of the supply chain – the raw product and its manufacturer.

Is it also a great example of beneficial outcomes for farmers and if not why isn’t it working.?

I think this statement by  MG CEO Gary Helou gets to the core of the majority of farmers supply chain challenges.

“We are not farmers; MG is a global dairy food processing and milk company, and we will not be buying farms directly; that is not our business,” Helou says adamantly.

Yes Mr Helou is right when he says  ‘MG is a global dairy food processing and milk company,’ but he is is very wrong when he says ‘We are not farmers’.  Rubbish Murray Goulburn IS farmers. Farmers who also own a very large ‘global dairy food processing and milk company’ and farms are a BIG part of MG’s business. MG have a co-operative structure partnership with thousands of them – over 3000 in fact.

Mr Helou is not alone in forgetting the importance of a ‘we are all in this together’ communication strategy and mindset when talking to stakeholders, farmers have an equal role to play here.

Sadly this  ‘them and us’ mindset has become so entrenched, victim mentality rules and farmers feel disenfranchised

How many farmers do you meet who have regular meetings with their supply chain partners?

How many farmers do you know that proactively engage with processors and supermarkets to develop mutually beneficial relationships ensuring value is delivered at all points along the supply/value chain.?

I can count the number of farmers I know that do that on one hand.

If you are like me and agree the only way forward to achieve a profitable and sustainable agrifood sector future is strong, healthy supply chain relationships in which our farmers are empowered, active participants then we need to change the current culture of ‘talking and doing’.

I believe the first question we need to ask to is WHY  the current supply chain culture that greatly disadvantages farmers ( and almost everyone else except the supermarkets) exists and once we have a consensus on the WHY lets figure out HOW we change it and  then DO it.

Back to the owning parts or all of the supply chain

Its the old adage “it doesn’t matter how good the concept its the people that make it work’

Everyday the supply chain gets more complex,everyday farmers are losing contact with consumers. everyday supermarkets get bigger and more powerful.

If farmers want to ensure they are not gobbled up by the challenges and have the capacity to grab the opportunities then we must be as active beyond the farmgate as we are on the farm

beef_supply_chain

MacDonald’s is a great example of recognising the need to build, maintain and communicate strong supply chain relationships