Galati family launches Spudshed milk brand

Spud King Tony Galati hopes his company’s foray into the world of milk sales will strengthen the future of fresh milk supply in Western Australia.

The Galati Group has contracted 90,000 litres of full cream milk and 18,000 litres of HiLo milk from Bega Group, which has a processing facility in Bentley to produce its own Spudshed range which hit the shelves on December 1.

Galati Group chief executive Frank Galati said Spudshed’s branded milk would support the state’s dairy sector and be competitive for consumers.

“We have been working with Bega on signing longer term agreements with [farmers], and working directly with the [farmers],” he said.

“[Bega] deal with the farmers directly, and they are all about working with farmers and ensuring they have got a sustainable price on farm.

“We are spreading the Spudshed story all over the place and this was a good opportunity to put the Spudshed name onto some milk.”

Mr Galati said Spudshed would initially focus on the two main milk products – full cream and HiLo.

The milk will be sold in two and three-litre bottles at all 19 Spudshed outlets.

Tony Galati said support for locally produced milk would keep money circulating in the state.

“You do a bit of traveling and you see, overseas, there isn’t a lot of fresh milk available,” he said.

“Everything is long life milk, and hopefully Australia doesn’t go that way.

“This is milk that Western Australians can feel good about. It is produced in WA, by West Aussies, for West Aussies.”

Tony Galati said Spudshed would continue to stock Harvey Fresh and Brownes’ milk ranges.

Spudshed’s milk brand launch comes fresh off acquiring an increased stake in the apple industry via the purchase of two orchards in Manjimup for $14m.

Tony Galati said Galati Group’s efforts to expand the apple industry would lift a sector hit hard in recent years by high labour costs, low yields, and growers switching to avocado plantings.

“The prices of apples at the moment are very expensive,” he said.

“We can’t blame the growers, because it’s been really tough, and cost of production – labour – is very expensive.

“There is a massive shortage so all of a sudden, if something happens to the crop… that effect affects the supply, therefore the high prices.

“That is why we invested in these two apple plantations, because we will control the supply of those apples that come direct to our customers.”