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Ethical Dairy Pty Ltd t/a HOW NOW
By Cathy Palmer
I want to embed this investment somewhere
330 people pledged
3 hours left
AU$500,000 minimum target
Pledges will only be confirmed if the target is reached by: 24/06/2019 at 11:00 PM (AEST)Make a Pledge
Ethical Dairy Pty Ltd t/a HOW NOW
Ethical Dairy Company Pty Ltd (ACN 609 455 272) are offering up to 2,500,000 fully-paid ordinary shares at $1 per share to raise a maximum of $2,500,000. This Offer is made under the CSF regime in Part 6D.3A of the Corporations Act 2001 (Corporations Act).
The general public in Australia can buy up to $10,000 worth of shares in this company, as part of the new equity crowdfunding legislation (Note: there is no cap on how much Sophisticated Investors can invest). Please make sure to read the risk warning statement, offer document, and understand the Cooling-Off rights. Instructions on how to register to invest and pledge are here.
Letter from the founder
A new “kind” of dairy.
Milk drinkers of the world love their milk! And what’s not to love?! It tastes great (along with yummy yoghurt, cheese and ice-cream!) and we imagine it’s made by happy cows roaming lush green paddocks with frolicking baby calves nearby. But stop right there. Unfortunately that’s not the reality of the dairy industry, it’s just the advertisement.
The truth is that the dairy industry the world over thinks mainly about production and output per animal and not the cow’s welfare or individuality, let alone personality. As for the newborn calves (known as “bobby calves”), well, half of them (approximately 400,000 per year) are an inconvenient byproduct and are literally killed around 5 days old.
But, for a minute, let’s go back to that image of how we would like dairy to be, because that’s where HOW NOW comes in.
Driven to change what the world accepts as the norm in dairy production, we have created a unique way of dairy farming. It’s called “the HOW NOW way”. We want you to have your milk, genuinely comfortable that the cows who produce it, and their calves, are treated with respect and kindness. As simple as that sounds, we believe it’s pretty much a dairy revolution.
Incredibly, I had been told over and over that current practices are the only way things could be done: it is done this way because it has to be. Rubbish! The cows apparently don’t mind their babies being snatched away from them. Puhhhhlease! That the cows would become aggressive in the dairy. Seriously? That the cows would hold their milk. Really? That the cows would hide their babies. Where?
Over the past two years we have refined our “cow and calf should stay together” idea and proven it’s not only possible to keep our bovine mums and their babies together in a commercial dairy, but we find that it’s spectacularly successful. True, we are tiny, but so far, we’ve produced over 700,000 litres of milk without separating the calves from their mums and without killing a single bobby calf. Furthermore the cows have given us every indication that this more natural way of managing them is better for them with improved health and superior milk quality with several awards already in the cabinet.
We are also doing things differently with our land. We believe the regenerative farming approach we are developing is unique. Our approach starts with a simple question: how can we farm to maximise animal health and well being? And ends with amazing dairy produce from really contented cows. Our approach to the land complements our approach to the cows, so we will have a far more natural environment for them with an aim of being at least carbon neutral: that will really be something! A little patch of Eden.
Plus, we have been working towards a new accreditation standard for the HOW NOW way - think of Demeter for Biodynamic or more widely the Halal stamp of accreditation. This will create not only support and education for the dairy farmers that join us, but it will ensure our principles are kept intact. Importantly, we really believe we have the right tool at the right time. Our long term aim is that as ethical farming expands, our accreditation system could become an international standard.
Some great things have happened along the way:
- Our animals are flourishing with very few health issues.
- The pregnancy rates in the herd are close to twice the average of conventional farms.
- Awards have confirmed our belief that kind milk tastes better - we put it to the test! Delicious Produce Awards Best Milk in Victoria 2017 and again in 2018, a Silver Medal from the national Australian Food Awards 2018. People regularly comment that our milk tastes like “how milk used to be.”
- Established industry folk tell us our milk makes outstanding cheese and yoghurt.
- Most importantly, the dairy industry has started talking about the “bobby calf” problem it has.
- With the help of branding agency Truly Deeply, we have developed branding and a logo that we believe is the envy of the industry
- Just in the last couple of weeks, Australia’s preeminent ethicist, Professor Peter Singer has recognised HOW NOW as a great step forward for animal welfare and the dairy industry, demonstrating the benefits of keeping cows and calves together, in several nation-wide interviews. You can listen to the interview from 774 Radio here http://bit.ly/hownow774
We are working hard to position HOW NOW as the brand that stands for a better way, a kinder way, and believe by building a strong community, we could build a strong brand. HOW NOW has a small but firm grip on the ethical dairy market. Our community engagement on social media activity warms my heart and confirms we are on the right track, but we have barely begun.
Now it’s time to take HOW NOW to the next level. We currently produce only one product of 2L full cream milk due to time, finance and milk volume constraints, and sell it in Melbourne and Sydney. The feedback from our community is at times, overwhelming, and convincingly supports our desire to expand into a wider range of products and markets. Our dream is to create and showcase a revolutionary dairy and a revolution in the dairy world through a suite of exceptional products.
So what’s next? Well, here’s my “perfect world” vision for the next few years - tell me if I’m crazy:
a HOW NOW farm, a cow oasis owned by our community, that welcomes you, your family and your friends. Our community owners will be treated like family. Ideally the farm would be close enough to Melbourne and public transport to enable you to visit at least a couple of times a year, and see:
- All of our products processed on-farm and easily viewed from glass fronted containers that would be the processing plant - milk, yoghurt, cheese and butter.
- A shop showcasing the best of our dairy products and the wonderful animals that created it for you!
- Our girls and their calves would be milling around, they could come up and meet you (if they feel like it). I’m certain meeting our girls will move you in the same way it has me.
This is - it has to be - the future of HOW NOW Dairy.
To enable this to happen, we need to invest significantly in HOW NOW.
Ideally, we would be able to also renovate our old dairy to more comfortably manage and milk our cow-centric way - when funds allow, a voluntary milking system whereby the cows decide for themselves when it’s milking time - no humans involved other than cleaning up. We’d improve our pastures introducing a greater variety of grasses and herbs to ensure HOW NOW Milk continues to taste so delicious. If we raise our maximum goal, we will seriously look at purchasing a new farm in an even more cow-friendly environment closer to Melbourne.
I’ve talked about crowdfunding with many of you, but I just could not get comfortable with the traditional approach. Now I have found a solution that sits perfectly with the ethics of what we do – “equity crowdfunding”. Instead of receiving a “gift” or a discount, you actually purchase shares in HOW NOW Dairy. My wish for HOW NOW to become a community-driven force for change goes to a whole new level with this model. You will get to come on this journey with us and share in the story of hopefully changing the future of dairying the world over.
The future, our future, is full of excitement. With our money and hard work, we have already changed the conversation; with your money and support, we believe we can change the world!
It’s time. It’s time now to change dairy forever. We’re right here and ready to go. We can’t wait for you to join us.
Ethical Dairy Company Pty Ltd
Note from PledgeMe
We have completed background checks on the Company (Ethical Dairy Company Pty Ltd (ACN 609 455 272) and the Board of Directors (Cathy Palmer and Les Sandles). We found no adverse findings in our checks. Please read the warning statement, offer document and ask questions before choosing to invest. PledgeMe will receive 6% (GST inclusive) of the funds raised, if the goal is met by the deadline.
Over 300 pledgers, 3 hours & a third to go!
24/06/2019 at 5:20 PM
Wow. In the last 24 hours, we’ve had over $150,000 pledged. But in order to hit our goal, we need to raise another $170,000. We think we can make it, but we need your help sharing to make it happen.
Cathy is going to be running a Facebook & Instagram Live from 7pm until we close our campaign (jump on socials tonight if you’d like to send some words of support). Les is going to be activating all of his networks. Our family and friends are out there pledging and sharing.
Can you please:
- Share share share our campaign: https://www.pledgeme.com.au/investments/13-ethical-dairy-pty-ltd-t-a-how-now
- Shoulder tap anyone you know that might want to invest in our campaign
- Celebrate publicly how much all of you have supported us. It’s so humbling to have 300 of you at our backs, helping turn this into a movement.
As many of you know, this has been hard for us. Growth is expensive, drought is expensive, and having ethics in business is expensive. But we truly believe, that with the investment and support of our community, we can make HOW NOW the normal. Our tiny dairy is committed to kindness in dairying, and while the benefits begin cowside, they are really showcased in the taste and texture of the amazing produce we can create.
Thank you again for all your support. Now, onwards to funded!
Cathy and Les
24 hours to go - we can do it!
23/06/2019 at 5:42 PM
We’ve raised almost $200k so far for our campaign thanks to your pledges. That’s almost half way to our goal!
We’ve been told that we can still make it. That there’s this thing called Deadline Magic. People need a deadline, and it’s not unusual for hundreds of thousands of dollars to be pledged in the final few hours. If you’re like me you usually pay your parking fines on the day after they’re due. I remember reading a mindfulness book that spoke about not doing that - how while we are waiting til the last minute to do things we are occupying space in our brain…. I threw the book at the wall after that 😉
Let’s prove that deadline magic is a thing. Prove that our company is doing something you really believe in and believe is worth fighting for. Prove that it is possible to have a kinder way to dairy. Be smug around the water cooler tomorrow morning and ask all your mates did they pledge?
Please share our campaign closes on Monday (that’s tomorrow 😳) at 8pm, with our link: https://www.pledgeme.com.au/investments/13-ethical-dairy-pty-ltd-t-a-how-now
And here’s one last thing - whoever makes the biggest pledge in Victoria (from when we launched), I will personally hand deliver some How Now Milk to your home, office or business and if you’ve got time I’ll have a cuppa with you.
I’m doing a final Facebook Live tonight at 7pm with another “from the farm” story and naturally happy to answer any final questions or comments.
30% funded! We can do this, with you.
19/06/2019 at 3:45 PM
Thank you so much for your support! We are now, officially, 30% funded. But we have to hit 100% of our goal to make our cow oasis happen.
You’ve already done the biggest show of support by pledging. But in order to make our oasis, we need to act as a community. Here are two ways you could help:
- Share the campaign publicly: post it on your Facebook, your Insta, a post-it note on your forehead. Maybe not that last one.
- Share the campaign privately - talk to your friends, family, your boss. Tell them what we’re doing, and why you’re investing in us.
Thank you so much. Just a few more days to go. I truly believe that we can make this happen, together.
Join us online! Wednesday 12 June at 7pm
11/06/2019 at 3:36 PM
Tomorrow night, I’m hosting a Facebook Live and an IGTV. Have questions? Words of support? Requests for more products? Join us at 7pm.
You can start pre-asking your questions on Facebook here and Instagram here, if you’d like, and watch the full announcement video from me. You could also share with your crowd, so they know this “Ask Me Anything” is coming.
It won’t be just me, Dr Les will be in the house too! We are excited to get this across the line, with all of you behind us.
Let’s make it a bit interesting. Let’s make it a pledge-a-thon! If you pledge while we’re online, we’ll shout you out personally to say thanks. We might even make it a bit more like us!
Let’s get this dairy revolution going.
Ps. We have a new video on our campaign page. It’s not flashy, but its us! You can meet the girls, me and Les, and hear more about why we’re doing this work. Head to our campaign page, or here on Youtube to watch it: https://www.youtube.com/watch?v=hXsMkzQohbA&feature=youtu.be
Almost 25% funded, can you share?
05/06/2019 at 5:46 PM
We are just over a week into our campaign, and we’re almost 25% funded! Thanks so much for pledging to our campaign.
We’re told that the middle part of any campaign is where things slow down a bit. So to keep up the momentum, we would love if you could share our campaign with your crowd. Tell them why you pledged, or even share the video of us on the Project last week. Make sure to include the link to our campaign page: https://www.pledgeme.com.au/investments/13-ethical-dairy-pty-ltd-t-a-how-now
Thanks so much for your support, by investing in our company to grow a new kind of dairy.
5 days in and almost 15% pledged!!! Thank you.
29/05/2019 at 7:19 PM
Can you believe we are 5 days in, and almost 15% pledged!!! And that is thanks to you and your pledge.
I’m so excited about what the future might hold for dairy. Who knows, we just may be able to pull this off and start making more noticeable changes in the Dairy industry. And one day, if we grow our company and make a profit, you might even make this investment back (and hopefully more). Because you will own part of the solution that I believe we all need to get behind.
Well for me personally it’s been one of those crazy weeks that you don’t want to experience too often. Naturally, everything was a mad rush to get the equity crowdfunding campaign together and released in time. I don’t help the situation much, as I’d prefer to be writing to all of you, taking photos of the gorgeous girls and their babies and developing the new products I can’t wait to start on. But hey, we got there.
Of course the day after we launched I lost my voice - funny right! Not really. But it did give me time to sit still and really think about what we are trying to achieve. I can post millions of photos of my beautiful girls and their babies on Instagram and Facebook to show the happy side of what we do. What I don’t ever do is show the real side of dairy. The dark side. For me personally, when I see someone pick up a glass of regular milk, or smash down a milkshake or enjoy a perfect standardised milk latte, I see a calf. A newborn dewy curled up, blinking baby, who hasn’t even walked for the first time, snatched away from mum moments after birth and removed to a shed, to be kept for 5 days then sent to slaughter. So I often get kept awake at night lamenting over the other 400,000 odd calves I can’t save right now, just because their mum didn’t end up on a How Now farm. I’m so hopeful that will change.
As you all probably figured out The Project rescheduled us. I’m waiting on an updated date! They told us the day they were at the farm (when I enquired about a screening date) that it’s never in stone on a news program as anything can happen and they have to always go with breaking news.
In the next day or so I’ll put our freshly finished pitch video up - it’s nothing flashy. We certainly can’t afford a film crew - think me or Les with an iPhone and you’re there ;) But I felt it was important for everyone to see what the farm (and life on the farm for the girls) really looks like. Because while many of you have been with us on the journey, I’m seeing lots of new faces starting to follow our story as well. When we share the video, I would love if you could share it with your crowd too.
I asked myself what success would look like in the 3 days I couldn’t talk to anyone - and I identified it. Success for me would be people everywhere being able to choose if they would prefer to drink How Now milk. Right now that choice doesn’t and can’t exist mainly beyond inner city because our production is completely capped by our ability as a 2 person team to cover the massive workload. Which means we also can’t expand our product range. Side note: I don’t know how much longer I can live without real butter :(
But my mantra is this folks - one cow at a time.
One cow not having her baby snatched away.
One cow keeping her calf with her as nature intended.
One cow and calf content and happy.
One cow having a fulfilling and enjoyable life.
Thanks again for your investment in our company. Please share our campaign with those you know, as we need a crowd to get this dairy revolution across the line.
|Maximum Shares Offered||2,500,000|
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Ask a Question (You must login to ask a question)
Hi....I note $100k of funds goes to directors remuneration? Can you explain this in more detail? Eg If only min of $500k raised is this still the case? Over what period is it disbursed?Posted on 26-05-2019 by Stephanie Margetts
The remuneration in the offer document is the maximum amount we would pay annually. This needs to be disclosed, as if our campaign is successful we will need to comply with related party transaction rules going forward. This covers payment to our directors for their work running the business. The Directors are Les and myself. Until now we have worked for very little pay. If we raise the minimum we will be taking smaller salaries than the disclosed amount.
Let me know if you have any other questions!
Answered on 27-05-2019 by Cathy Palmer
I fully support your effort to run a commercially viable and an ethically good dairy business.
And yes, there is a but; am I reading the offer document correctly in that the business has negative equity (more liabilities than assets) and is also trading at a loss (more expenses than income)?
If this is correct, I have two questions. How did you come up with a $7.5MM valuation? And how close is How Now to insolvency?
Again, I fully support the venture, buy the product and would even make a donation. But I'm not seeing the investment play here.
- LiamPosted on 28-05-2019 by Liam B
Thanks for supporting our product and what we stand for.
Yes, our financial statements show negative equity as a result of losses incurred from our early years of operations. These losses were incurred as we established and developed our unique dairy process and worked to build our customer base and brand. Our annual losses have decreased year on year and our current 2019 year is on track to make a small profit.
Our methodology for the valuation is based on the intellectual property and brand of the company, we have persisted with researching and developing a process that we believe has never been done before. If successful in our campaign, we expect additional revenue streams from new products to boost our income which we can then leverage to onboard other farms through an accreditation program.
In relation to the companies solvency, 94% of the liabilities are related party loans which were detailed in the offer document. We have no intention of repaying any amounts to these loans before the company is making healthy profits. With only $14,236 of current liabilities secured against $22,697 of equipment, we have no concerns about solvency.
If you don't see our offer as an investment but would like to make a donation, I encourage you to pledge- you will even get shares in our company in return!
Answered on 30-05-2019 by Cathy Palmer
Hi Cathy, this certainly sounds like an ethical venture and hopefully it will also be financially viable for you and investors. The business model talks about not separating calves but does not fill in the gaps thereafter. So my question is what happens to the "bobby" calves male and/or female? Also if the calf is still feeding from it's mother how does this affect milk production?Posted on 28-05-2019 by Fred Steinkellner
Thanks for your interest and belief in what we do.
It is correct that we don’t separate our cows and calves. We start weaning them from around 3 - 4 months. This is a gradual process. Once they are fully weaned they join the other calves of varying ages and we have a couple of our retired girls that take on the matriarchal role.
I expect and hope that demand for How Now will continue to increase and if we get other farms join us, we could be able to supply our cows to them, as we don’t ever want big herds where the cows become a number.
Because we use sexed semen there are very few male calves born. Our few fully grown male calves are still on the farm. I have committed to keeping them until they are 3 years old.
The calf drinking from mum does impact on production. But cows have been bred for a long time to produce far more milk than a calf needs. Eg: a newborn calf only needs approx 7Lt of milk a day and an average dairy cow produces anywhere from 20L right up to 40L per day! So there’s plenty of milk to share and we always make sure the calf drinks first.
That’s why I really believe what we are doing is common sense. Why would we remove a baby to feed it the mothers milk 100m away from its mother??? It’s crazy and it’s certainly not kind for the cow and her calf.
I want to change all that. I hope you’ll join me in creating a kinder way of dairying.
Answered on 30-05-2019 by Cathy Palmer
When do process the credit card pledge?Posted on 31-05-2019 by Martin Barr-David
Thanks for your support! No payments will be processed until we meet our minimum goal. If we don't meet this minimum goal then no shares will be issued and no payments will be processed.
I see that you have already pledged, which is helping us get to our goal! big hugs all round.
Currently, ASIC won't allow companies to extend the deadline so we are really pushing to make this happen in the next 18 days!
Answered on 06-06-2019 by Cathy Palmer
Just wanted to say thanks for the clear answers on valuation, yourselves as creditors and solvency. I’m pledged in and wish us all the best in getting the capital to do good stuff.
Best, LiamPosted on 01-06-2019 by Liam B
I think what you’re doing is great and plan to pledge. I’m just wondering what happens if you do not reach your target? Will shares be lost (ie will the money pledged then be viewed as a donation) or will you extend this offer until you reach your target? Either way donation alone or shares it is toward a great cause. All the best.
Thanks for your support! Payments will not be processed until we meet our minimum. If we don't meet this minimum goal then no shares will be issued and no payments will be processed.
So when you pledge you are helping us get to our goal! If we don't make it we can't take any of the pledges.
Currently, ASIC won't allow companies to extend the deadline so we are really pushing to make this happen in the next 18 days!
Answered on 06-06-2019 by Cathy Palmer
How do you remain sustainable with birthing? I imagine you will have to slaughter some males and some cows otherwise you would be overrun with cows? Also how do you inseminate?Posted on 07-06-2019 by Lynne McAlister
sorry I missed this message. Thanks for your support and interest in us. With the birthing we use artificial insemination as we are using sexed semen. This ensures we pretty much only have females. We also have other methods we are working on which means our cows don't have a calf each year, keeping the herd size down. My dream is that other farms will join us and if required we can help out with supplying cows. The beauty being these cows will be the start of a new breed that has never had a calf removed. Our retired cows currently stay on the farm. Ideally we will retire them to an open farm for visitors. This is still in the works. I hope you decide to pledge with us so we can continue our work of creating a kinder way of dairying.
Answered on 14-06-2019 by Cathy Palmer
Followers of Ethical Dairy Pty Ltd t/a HOW NOW
2019-06-24 17:05:07 +1000
2019-06-24 16:58:57 +1000
"Wonderful idea for the cows and the dairy industry "
2019-06-24 16:44:03 +1000
2019-06-24 16:39:23 +1000
2019-06-24 16:27:34 +1000
2019-06-24 16:20:23 +1000
"Thankyou, How Now Dairy, for helping to make the future a little kinder."
2019-06-24 16:11:05 +1000
"GO HOW NOW! "
2019-06-24 15:53:51 +1000
"Good luck, 🤞🏻"
2019-06-24 15:36:58 +1000
"Good luck. Great cause"
2019-06-24 15:33:33 +1000
2019-06-24 15:32:49 +1000
"Cathy and team - this is amazing what you have been doing. Fingers crossed you get to your target. Love to the girls, Lyn x"
2019-06-24 15:31:18 +1000
2019-06-24 15:20:41 +1000
2019-06-24 15:19:26 +1000
2019-06-24 15:13:57 +1000
"Imagine if this was a global movement?!! I know my sister has the passion and capacity to make this happen! "
2019-06-24 15:07:38 +1000
"Good luck for the last few hours of the campaign! I hope you reach the minimum needed!"
2019-06-24 15:02:22 +1000
"Good luck. Thanks for looking after the cows!"
2019-06-24 15:01:32 +1000
"Hugs to you Cathy Palmer, I wish it was more - but very pleased and proud to be an investor in your project. Best of best of best of luck. x"
2019-06-24 14:58:03 +1000
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2019-06-24 13:57:14 +1000
"Hoping and wishing this would change the mind set of many dairy farmers, to follow cathy's cruelty free farming methods. Every life is precious , and should be valued as such. Cathy i wish you all the best for a successful farming venture ."
2019-06-24 13:52:08 +1000
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"Whatever happens never give up, never surrender - you are on the right path. "
2019-06-24 12:46:42 +1000
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2019-06-24 12:29:35 +1000
"All the best 👍🏼 "
2019-06-24 12:17:33 +1000
"Hope you reach your target! "