The “international first” of $5 a litre “uncooked” milk has not been the innovation goldmine the founders of diary tech startup Made by Cow had hoped, with the enterprise positioned in voluntary administration final week and shutting its doorways.

The Sydney startup developed a patented technique to deal with milk so it was protected to drink with out utilizing warmth pasteurisation, calling it “chilly pressed uncooked milk” – a riff on the approach utilized by the additional virgin olive oil trade. Whereas milk is often heated to 72°C to kill micro organism and make it protected for human consumption, Made By Cow developed know-how to deal with it within the bottle utilizing excessive stress to remove pathogens and retain extra vitamins. It additionally gave the milk a six week shelf life.

Unpasteurised milk – it’s unlawful to promote for human consumption – turned a fad in Australia round a decade in the past, utilizing a loophole as a beauty product or “bathtub” milk. Authorities clamped down after a baby in Victoria died in 2014 after ingesting uncooked milk.

Made By Cow pioneered a authorized various in round 2016, and inside just a few years the product, made utilizing milk from a Jersey herd on the NSW South Coast, was out there in main grocery store chains together with Harris Farm, IGA and Coles. It was based by meals entrepreneur Saxon Joye, cofounder of Care Meals Co and Jucci.

However final week the dream soured and CEO Wade Porter handed the enterprise over to Kate Conneely and Scott Kershaw at KordmaMentha below voluntary administration, in addition to shutting down manufacturing at Homebush in Sydney’s west.

Porter stated in a publish to Instagram that it was “a really robust choice has been made to stop manufacturing” however the “enterprise has confronted financial uncertainty and provide chain challenges” amid rising rates of interest and inflation.

“We’re pleased with our unbelievable journey and to have created a very modern product that was loved by 1000’s of loyal clients,” he stated.

“In recent times we’ve got been on a robust trajectory with our enterprise rising upwards of fifty% year-on-year.”

Porter thanked his devoted buyer base.

“We began as an unknown dairy model making an attempt to do one thing totally different and have grown right into a model so a lot of you’re keen on,” he wrote.

“Thanks for believing in us, the rising demand and love for our milk has made daily of exhausting work worthwhile.”

When Made By Cow held a media launch in mid 2019, Porter stated on the time that he’d been contacted by several nations within the patent know-how they’d developed. 

That IP and the corporate’s tools may have enchantment to potential consumers, however the contemporary milk market stays a extremely aggressive and low margin sector, regardless of the excessive ranges of consumption of dairy by Australians.

KordaMentha has been contacted for remark. A primary assembly of creditor is scheduled for June 6.