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Mungalli Creek Dairy Pty Ltd
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20 days left
AU$500,000 minimum target
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Mungalli Creek Dairy Pty Ltd
Mungalli Creek Dairy Pty Ltd (ACN 095 509 407) are offering up to 2,000,000 fully-paid ordinary shares at $1 per share to raise a maximum of $2,000,000. 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 founders
At Mungalli we have always been driven by big dreams.
We dreamed of regenerating our land using innovative Biodynamic farming methods so that we can produce healthy food without poisons, GMO’s or salty fertilisers.
… of rejuvenating our local communities that had been devastated by the deregulation of the dairy industry.
… of supporting family dairy farms, by helping them earn a fair price for their milk.
And then we filled our dreams with delectable cheeses, yoghurts, milk and cultured products made the traditional way with minimal processing.
Over the past twenty years we have been chipping away at our dream, first as a family and then as a team as more and more amazing people resonated with our vision. We are proud to say that we have turned those dreams into a reality.
Mungalli employs 50 staff (FTE), supports eight other family farms and turned over $10.6 million in sales in 2018. Last year the farms we support produced 3.9 million litres of milk across our two brands. Mungalli Creek Dairy which produces Biodynamic Certified milk, yoghurt and cheese and Misty Mountain Farms which produces Jersey milk and cream.
Until recently, our growth has been hampered by the amount of milk we could ethically and sustainably produce. So in 2015 we decided to act and purchased additional farms to convert to Biodynamic and organic farming methods. It’s a 3 year process but by July 2019 we can proudly announce that we will have an additional 1,000 acres of land fully certified Biodynamic with Demeter Australia. This will double our capacity and ensure we can meet the ever-growing demand for our Biodynamic milk.
With more supply, our original processing area needed a major upgrade to handle the increased volumes of milk. So in August 2018 we commissioned a new state of the art processing facility that is both cyclone and fire proof; constructed to optimise production flow, reduce contamination issues, be fully compliant and allow us to obtain export accreditation - the final touches to the fitout are happening as we write this and due for completion in July 2019.
With a new state of the art facility and a consistent supply of milk we are now ready to scale up.
To do this we need working capital to fund things like machinery, vats, churns, ice-cream and butter making equipment as well as product and market development costs. We also want to offer sustainable packaging methods just as much as you! As every parent knows, growth spurts are expensive. To be able to do these things sooner we are offering our crowd a chance to invest in Mungalli Creek via Equity Crowdfunding.
Our success has always been a result of the support of our customers and community, our greatest advocates, so it makes sense to bring our crowd along on the journey.
Become part of the Mungalli Creek family and invest in your food future.
We want to make a difference sooner and with your help we can.
Rob & Dan Watson
Invest in your food future
“As never before, the Earth as a living being is calling out to us for recognition, for healing, for sacred and sustainable ways of tending her soil, plants, animals, and landscapes.” (biodynamics.com)
Our vision has always involved the health of the people and the land. We believe as the current caretakers of this beautiful land, we have a responsibility to leave it better than before, so that this pristine part of Queensland is here in all its beauty for future generations.
Biodynamic Farmers use no pesticides, fertilisers or herbicides. We estimate that on the Watson 500 acre home farm alone, they have prevented the burning of 22,500 tonnes of fossil fuels by farming Biodynamically. That’s the amount of fossil fuels needed to make fertilizers like urea. It takes approximately 5 tons of coal to make a ton of urea. That’s costly for the farmer and the earth!
We have also regenerated and converted 30% of our farms back to native rainforest. These trees can absorb up to 3.67 tonnes of carbon dioxide for every 1 tonne of their own dry mass. That’s a huge reduction of carbon dioxide in our atmosphere.
We’re not interested in simply being carbon neutral, we go beyond achieving net zero carbon emissions to actually create an environmental bene t by removing additional carbon dioxide from the atmosphere with our regenerative practices.
Your investment buys shares in Mungalli Creek, which helps us make a difference by:
To sustain good health and vitality in all that we do – across our farms; food production; business development; families, staff and community with Biodynamic principles at the core of our actions.
What is Biodynamics
Biodynamic agriculture is a fully certified enhanced method of natural farming that treats the farm as a living system – to build healthy living soil and dynamic life giving food. It is the next level of farming beyond Organics and at the forefront of regenerative agriculture. Our business and farms have been certified A Grade Demeter Biodynamic since 2000.
Mungalli Creek Dairy is Queensland’s only certified Biodynamic Processor and one of only 2 Biodynamic Milk processors in Australia.
Who are we
Mungalli Creek Dairy Pty Ltd (MCD) is a family owned, on farm, boutique processor of Biodynamic and premium dairy products. Established in 2000, our company produces over 25 different Biodynamic dairy products and supports 9 family farms.
We have now been farming using regenerative farming practices for 30 years and have brought on board and mentored other farmers and now support 9 family farms. We believe in paying our farmers a good fair price so they can be sustainable and look after their land.
And it is here on our ecologically balanced farm, surrounded by ancient rainforest, that our family produces over 25 different product lines including biodynamic milk, yoghurts, cheese, cream, premium flavoured milk, kefir and bio-eggs. We employ 70 staff (50 FTE’s) across our farms, distribution, café and production.
Our premium range of Biodynamic milks, yoghurts, cream and cheese are sold predominantly in Queensland with smaller established markets in Sydney and Melbourne.
Our values & impact
“Sustaining Health and Vitality”
The core of our business is happy cows, healthy earth, great tasting food and sustainability way into the future. We strive to demonstrate best practice regenerative farming as a solution to environmental issues – our motto is “regenerate the earth one farm at a time”. To this goal, we have four pillars we focus on:
- Promoting sustainable land management
- Ensuring the health of our customers
- Our community & social impact
- Helping farmers look after & stay on the land
The organic market is growing rapidly across Australia, which creates a large market opportunity for us. Australians are increasingly choosing organic food options as they become more prevalent and consumers are no longer limited to health food stores to buy organic groceries.
- Between January 2017 and January 2018, it is estimated that the organic grocery market rose by $1.1 Billion, up 13.6% compared to 2016 (refer to Australian Organics - include reference)
- In 2018, 384 000 more households claimed to purchase organic grocery products compared with 2016.
- According to the Australian Organic Market Report - household penetration of Australian dairy products in the year ended January 2018 is 33.9%
- 77% of organic buyers say that a certification mark increases their trust in the product
Currently, the five major Dairy Processors account for 79% of milk volume nationally. All five of these companies are internationally owned. But with movements like the Go local, and Cream of Australia campaign consumers are increasingly choosing to buy local dairy. Our customers want both organic and local dairy. In our region there are no other local organic dairy farms.
The organic dairy industry is growing at a rate of approximately 10-20% per year and we see a great opportunity to expand our offerings and our market share.
What we’ve done to date
In 2016 we started planning for growth, Our two main focus areas were to ensure more certified Biodynamic Milk and improving our processing capacity.
- Converting land - In 2016 we started buying and leasing land to convert to Biodynamics. One of these farms is now fully certified Biodynamic and the other farm will be as of July 2019. This will give Mungalli Creek Dairy (MCD) a very secure and ever increasing supply of milk to meet the growing market demand.
- Updating the production facility - To go hand in hand with this increase in certified biodynamic milk intake, MCD has commenced a significant upgrade to our production facility. The new state of the art facility will be completed with all cold rooms fitted and operational by July 2019.
We intend to focus on the growing dairy market by doing what we love best – making delicious dairy products and making it as accessible to you as we can!
With the foundations laid for our growth, out next challenges are sourcing and funding the equipment to make new products, choosing the right products and doing the associated market and product development so we can bring our newest product ideas to market.
We have identified that demand for organic dairy is growing worldwide by 10-20% per year with the strongest growth areas being fermented foods, no added sugar, lactose-free and full-fat dairy – perfect!
1. New products
Our new production facility will provide us with the space to make ice-cream, butter, cream and specialty cheeses. This will require an investment in specialised equipment to make these new product lines. We will also investigate more sustainable methods of packaging and distributing our products is also high in our sights and to have the most impact here we need to raise the maximum amount.
2. New markets
Currently demand is outstripping our supply, however with more milk and our new production facility we will be able to distribute further afield. With your help we will expand our marketing and sales teams so that people across Queensland and Australia have the chance to access our unique Biodynamic Dairy Products.
Our new production facility has the potential to be export accredited. With a strong emerging export market on our doorstep there is opportunity to expand further afield. Global demand for Australian dairy continues to rise and higher commodity prices have boosted the value of this trade.
Where we want to go
Intended use of funds
Research & new product development ($50,000 - $250,000)
Research and New Product Development. With a minimum subscription, a lot of this will be done internally. With the maximum subscription, we can outsource this work to consultants and food technologists bringing greater skills, experience and more offerings to the table.
Processing equipment and room upgrade ($150,000 - $350,000)
Purchasing new plant and equipment, Ice cream machines, blast chillers, butter and specialised cheese manufacturing equipment. Upgrade of the existing yoghurt manufacture room With a minimum subscription the existing yoghurt room will be upgraded and equipment finance will be used to purchase new manufacturing equipment. With a maximum subscription then a wider range of equipment will be purchased with these funds.
Trialing & researching sustainable packaging options ($20,000 - $250,000)
We are very interested in reducing plastic wastage and looking at more sustainable packaging options. Money will be spent exploring and trialing new ways of offering sustainable packaging and recycling to our customers.
Sales and marketing ($100,000 - $250,000)
We plan to grow and expand our geographic market area significantly. This will require an innovative approach and increasing our Sales Team. We also plan to purchase multiple chiller vans to service farmers markets to help grow sales and employ Sales staff to look after these markets.
Working capital ($150,000 - $270,000)
We will require a reserve of working capital to deal with new product development costs, the production of ice-cream and long maturation cheese in times of summer milk supply. Working Capital will also provide reserves when changes to our production schedules occur from fluctuations in sales & distribution requirements
Upgrade to our farmhouse cafe & retail outlet ($0 - $200,000)
The movement of the processing equipment into the new processing facility will free up space for our Farmhouse Cafe to expand. This will allow us to upgrade these spaces for groups, buses, and an ice cream making area
External works around our new facility ($0 - $250,000)
Our new production facility is funded and fully compliant. We do however require additional funds to complete external works including hard sealed driveways, car parks, and landscaping. A new factory office, change rooms, and lunchroom needs to be constructed for our team.
Offer Costs ($30,000 - $120,000)
The costs of the Offer include the Intermediary’s fees under the hosting agreement between the Company and the Intermediary. These fees are 6% of the total raised (GST inclusive) which would equate to $120,000 if the maximum goal is reached.
TOTAL: $500,000 - $2,000,000
An investment in the Company should be seen as high-risk and speculative. A description of the main risks that may impact our business is included in our offer document. Investors should read this section carefully before deciding to apply for shares under the Offer. There are also other, more general risks associated with the Company (e.g. risks relating to general economic conditions or the inability to sell our shares).
Robert Watson - Managing Director & CEO
Rob is a strong visionary and has completed the Australian Rural Leaders Program in 2014. He is responsible for the financial monitoring and overseeing of the Business and Product Development. Rob also brings a passion in and many years experience in Biodynamic Farming & Soil Regeneration.
Daniel Watson - Director & Farm Manager
Dan brings a down to earth practicality to the business and is responsible for Farm Management, Herd Health & Maintenance. He works jointly with Rob on overseeing Mungalli. Dan’s strength is in building sustainable farms and strong staff relations and in the early days, he was our Cheesemaker.
Alain Martigner - B. Mech Engineering - Plant & Operations Manager (5 yrs)
Alain is at the helm of where the Mungalli magic happens. He’s responsible for all facets of production and successfully negotiates the busy schedule with his loyal team. He oversees the plant and manufacturing operation and our Distribution hubs.
Michelle Bell-Turner B. Bus (Tourism) - Marketing & PR (14 years)
Michelle is primarily responsible for Business Strategy, Business Development, Marketing, and Public Relations and is a keen negotiator, facilitating future planning with prowess. She holds a Business Degree in Tourism Management and has a strong background and passion with Organics & Biodynamics.
Trish O’Shea - Quality Assurance Manager (18 years)
Trish has been with us from the very beginning. Responsible for Compliance, Quality Control and Certification Auditing, her 25 years of research and dairy laboratory experience means our products are in safe hands.
Deris Marin - Diploma of Mgt - Sales Manager (17 years)
Deris is responsible for ensuring that the Mungalli products and message are shared. His approach and customer relationship management skills have cemented Mungalli Creek as an iconic and trusted brand of the Far North.
Alison Steele - Finance Officer (10 years)
Alison is responsible for the overall financial health of the organisation, providing regular reports, budgets, and direction to the Executives. She is also responsible for Payroll.
Elizabeth Watson - B. Creative Writing (Hons) - Social Media Marketing (2 yrs)
Beth has a strong understanding of the Millennial generation, thinks outside the box and has a flair for writing and design, has travelled and worked internationally and bring those insights to the table.
Lachlan MacDonald - Farmhouse Cafe Manager (1 year)
With over 30 years of hospitality experience, training, and team building we know our Farmhouse Cafe is in good hands. Lachlan ensures we offer a great customer experience and innovative ways of showcasing our products.
Neale Johnston - HR & WHS Advisor (Our newest team member)
Neale brings over 25 years of experience in Human Resources, Planning, and Industrial Relations. He ensures our compliance across these key areas as well as working with our Managers on team happiness as we navigate the next stage of our growth.
Information about Investor Rights
- Cooling-off Rights - You have the right to withdraw your pledge for any reason (including if you change your mind about investing in the Company). You must do so within five business days of making your application (the Cooling-off Period) by emailing [email protected] with your full legal name and number of shares you pledged for.
- Communication Facility for the Offer - You can ask questions about the Offer on the Question tab above.
- Effect of the Corporate Governance Concessions - there are some concessions around the Annual Report, Takeovers and Related Party Transactions.
Note from PledgeMe
We have completed background checks on the Company (Mungalli Creek Dairy Pty Ltd) and the Board of Directors (Robert Watson and Daniel Watson). 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.
We're almost 20% funded!
12/04/2019 at 5:51 PM
Thank you so much to all our wonderful pledgers for investing in us! We’re almost at the 20% mark, and we just launched to the public yesterday.
For our followers, now is your time to invest! You can read the offer document here, and ask us any questions through the Questions tab on our campaign page.
If you want to learn more about our campaign, our company, and our team, we’re also doing a Facebook Live with the whole family on Monday night at 7 pm. Just follow us on our Facebook page to be notified when we go live.
We really want to raise our maximum goal of $2 million, because if we do that we can make things like ice-cream, butter, and boutique cheeses. We also want to investigate sustainable packaging options but to do that we need your help!
To invest, people need to know that they have the opportunity to buy shares in Mungalli. So please help us get the word out if you have pledged. Tell your mother, brother, girlfriend and best friend. Pop your head over the fence and tell your neighbour about it. We want people shouting it from their rooftops! Let them know that they are supporting a family business that sits right in their backyard. The more people who own shares in Mungali, the stronger we believe our community business will be.
Did you know that currently, the five largest dairy processors in Australia account for 79% of milk volume nationally? But all five of these companies are internationally owned. We want to change that. And with your investment, we believe we can.
Farmer Rob, Dan & the whole Watson family
|Maximum Shares Offered||2,000,000|
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|Robert Watson||CEO / Director||https://www.mungallicreekdairy.com.au/||✔|
Ask a Question (You must login to ask a question)
I'm a big fan of your business and am very happy to have the opportunity to be involved.
Just a comment regarding section 2.13 Risks facing the business, I notice there is no mention of animal rights activism in there. Given the news this week I think it would be pertinent for some thought to be put into an animal rights activism scenario. Do you have basic security measures in place like security cameras and lockable gates etc?
Thanks so much for your email - It is a discussion we will have at our Family Advisory meeting next week. The Company is the processor only for all the milk from the farms. It is something that so far we have been OK on, that said yes a risk mitigation strategy is definitely something to consider- both Safe Food Queensland and Queensland Dairy Farmers Organisation have sent out guidelines and recommendations in the last few weeks. Many thanks Michelle
Answered on 09-04-2019 by Mungalli Creek Dairy Pty Ltd
I just saw this notice come up: "Thank you for your pledge! We'll be in touch once the campaign meets its goal, and again when it closes, so you know we'll be charging your card."
I opted to direct debit. Does this mean if I forget to transfer the deposit?Posted on 10-04-2019 by Reece and Lyn Gore
Hi Reece and Lyn,
yes, that's correct! We'll only charge your card if your deposit doesn't come through within the set time frame. Thank you for your pledge!
Anna (from PledgeMe)
Answered on 11-04-2019 by Mungalli Creek Dairy Pty Ltd
Hi - I am interested in this offer -Just wondering if and when one wants to sell shares one has bought what is the process? Thanks and best wishes
Regards Mike W
Whilst the Company is unlisted it would be a matter of finding a buyer and listing your shares for sale based on the current valuation of the Company.
Normally people buy shares knowing it is a long term investment and that they are getting in at the ground floor level and they reap the rewards of the growing value of the Company down the track.
If Mungalli decided to publicly list over time then the normal share market mechanisms will operate.
I hope that helps and if you have any further questions please let me know.
Michelle (from Mungalli Creek)
Answered on 23-04-2019 by Mungalli Creek Dairy Pty Ltd
Followers of Mungalli Creek Dairy Pty Ltd
2019-04-23 16:59:51 +1000
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"Wishing you all the best, hope this goes well. "
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"Fabulous range. Happy to support a local company producing quality dairy products. "
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"Hope for oversubscription "
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"Keep up the great work "
2019-04-18 12:43:33 +1000
"As an avid Mungalli consumer I am proud to be associated with this fund raising initiative. Susan Wright"
2019-04-17 21:14:47 +1000
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"Love your work."
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"A small contribution. All the best. I hope you will work hard to find other forms of packaging rather than plastic. "
2019-04-17 01:21:05 +1000
"Best of luck. I’ll be using some of your products in my restaurant."
2019-04-16 20:09:22 +1000
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"Happy to be part of this new way of ingesting in sustainable agriculture. Keep up the great work. Your cheese is delicious. "
2019-04-16 14:55:26 +1000
"Fantastic to see Rob and Michelle going for it! With you all the way, from your friends at Food Connect, Rob and Emma :)"
2019-04-16 09:29:38 +1000
"Lets get the word out"
2019-04-15 22:34:54 +1000
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"Good luck with the expansion!"