DONALD biscuit manufacturer Kooka's Country Cookies is continuing to survive, six months after announcing it was in danger of closing its doors.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Manager Graeme Harris told the Mail-Times in January the $2.5-million-a-year manufacturer was under threat as sales dwindled and cheaper imports flooded the market.
Mr Harris said since January, strong support from Wimmera customers had helped sales, but increasing input and freight costs, dealing with major supermarket chains and the carbon tax were taking their toll.
Despite not feeling the full effects yet, Mr Harris said he expected the carbon tax to add about 10 per cent to the business's expenditure.
"It eats into the margin for sure, it is just something we have to wear," he said.
"Suppliers such as gas, electricity and sugar have all indicated prices will rise. The impact is not noticeable yet, but no doubt it will be felt when these prices are passed onto us.
"We are a minor player in the Australian market, but we are a major player in the Wimmera market.
"If Julia Gillard and Wayne Swan think the carbon tax will not have a huge impact on small manufacturers, then they are kidding themselves."
Mr Harris said the carbon tax was the latest in a string of factors affecting his business.
"I would like to see more subsidising for regional manufacturers to combat the higher cost of freight," he said.
"It is crucial that we have a level playing field."
Mr Harris said as a small manufacturer it was difficult to negotiate with the major supermarkets.
"They drive a hard bargain, but that is the system that we have to work in. They are good payers, but their promotional fees eat into our margins," he said.
Mr Harris said Kooka's had increased its staff to 15 during the winter months, but that number would decrease during the quieter summer months.
"We have six full-time staff at the moment and casual staff; numbers can fluctuate during busy periods," he said.
Mr Harris said one way for the region to support its local manufacturers was to buy the product.
"We employ 15 people in the region. It is vital that people continue to support local business so that it can continue to be part of the community," he said.
