By Ilma Hackett – Balnarring and District Historical Society
In the 1890s creameries, where cream could be separated from whole milk for the production of butter, were being set up throughout Australia wherever dairy cattle were popular. It was believed that the butter trade could equal the wool trade as a major export. The peninsula was no exception. This would be a new industry giving employment to people and providing a local supply of butter for those who did not make their own butter at home
Possibilities explored
The parent company was the newly-founded Mornington Butter Factory which was gauging interest from surrounding dairying communities before setting up a factory. The proposal was to have branch creameries at Boneo, Shoreham and Balnarring supplying a central factory.
A meeting was held at the school in Shoreham in October, 1893 to explore the possibility of setting up a creamery at Balnarring or Shoreham. Enthusiasm for the venture was high. The parent company sought two things. The first was enough people willing to purchase shares to cover the cost of setting up the building and machinery needed in each location. The second was a guaranteed supply of milk. There were already a number of dairies in the area and it was thought the milk supply was assured. Milk would be taken to the creamery, the cream separated, and the skim milk returned to the supplier.
Many thought the factory could also embrace not only butter and cheese but also ham and bacon curing and the preservation of fish, rabbits, fruits and vegetables.
A committee was appointed with two representatives from each interested locality to canvass their area for people willing to support both the sale of shares and to guarantee a supply of milk. At a similar meeting held in the Mornington area enthusiasm was such that land was donated by A. Cook and J. Cain for creameries to be established at Mornington and Boneo respectively.
The central buttery
In June of the following year a meeting was held at Moorooduc to make the final arrangements to establish the Mornington butter factory and creamery. Discussions centred on where the main factory should be sited. These became rather heated at times but it was ultimately decided that it should be on Boundary Road (now Derril Road) in the vicinity of the Bittern (West) School and about two miles from the Moorooduc railway station. This decision led to the resignation of two representatives with another two following in support, but eventually they were persuaded to reconsider and withdraw their resignations.
Once the site for the Mornington Butter Factory was chosen, work began on its construction. Cream would be delivered from the creameries to the central butter factory twice a week. Whole milk could also be received at the butter factory and undergo separation there. A cool room and deep well were dug by hand. A supply of good water, fresh and of a low temperature, was essential for the factory. Refrigeration was provided by steam power
Creameries at Boneo and Shoreham
The scheme had been taken up at once by the Boneo community and in 1894 a meeting was held to start up a creamery on the land donated by J. Cain. The sale of shares would guarantee the construction of the creamery. Consequently, four hundred shares at ten shillings (10/-) each were offered and eighty were taken up quickly with the remainder soon sold to ensure the creamery went ahead in the area. In 1896 a tender was let to construct a stone-lined cellar for the cool storage of cream during the summer months.
It was hoped that the supply of milk and cream could be kept up to keep the creamery also working during the winter months. That year at the Horticultural Show it was proposed that a £1/1/- (one guinea, equalling one pound, one shilling) prize be given for the best cow in milk with a 10/6 (ten shillings and sixpenny, half guinea) prize for second. More and more farmers were making provision for dairying on a large scale.
Discussions continued throughout 1894 and the following year Shoreham man, Mr. Riley, donated a ½ acre of land immediately adjoining Stony Creek for a creamery to be built on the site. The new creamery at Shoreham went ahead and was officially opened on 24th October, 1897. Mr Downward M.L.A., who opened the creamery, praised the co-operation between the land owner and pastoralists. He pointed out that the surrounding land was splendid pastoral land which should make the venture a successful and profitable one. Newspaper reports stated the creamery promised to be the best on the Peninsula.
Balnarring was still hopeful of having its own creamery. In 1896 the directors of the Mornington Butter Factory informed the Balnarring community it would “gladly welcome any opportunity to extend the company’s business provided the residents could come up with the money to cover the cost of the creamery building and plant”. The butter being produced from the area was of excellent quality according to reports from the Melbourne market and from London.
Balnarring is rejected
However, the creamery in Balnarring was not to be.
In 1900 Balnarring was still pressing the Butter company. Dairy farmers promised a milk supply from at least 136 cows and a subscription in shares covered about two-thirds the cost of establishing a creamery. Once again the Butter Company promised to give the proposal “full consideration”. It was noted that during that year there had been an increased output from the factory and that satisfactory prices had been obtained both in London and locally. But despite this, it was felt Balnarring as a district could not guarantee a sufficient supply of milk to make a creamery profitable.
Shoreham had run into trouble in September 1898 when a boiler failure caused twenty-three days of lost production. The boiler that had been installed was a second-hand one and had not been inspected before installation. Moreover, it was found that the water from Stony Creek which was used to supply power for the creamery’s machinery, contained salt and other minerals “injurious to ironwork”. A new boiler was needed. It was also decided to build a dam for future water supply. This additional cost cut into the profits of the company.
The butter factory picnic day
The creameries and the central butter factory at Moorooduc did well for a number of seasons. The company introduced a Picnic and Sports Day for the district. This was held annually in March from 1897 for the suppliers, shareholders and friends of the company. The venue was ‘Penbank’ the property of Mr E Jones which was described as an ideal spot for such an event.
The ‘Mornington Standard’ newspaper reported that the Picnic Day in 1902 provoked a good deal of interest and amusement. That year a detailed report of the day was missing. The reporter sent by the newspaper to cover the event was a ‘new chum’, unfamiliar with the district. He took the train to the Moorooduc station and asked directions from the only person he saw.
He was told of a short cut across the paddocks which found him wandering miles from the picnic site. When he eventually arrived, it was time to leave again in order to catch the train for his return trip. However the program for the day was outlined in the newspaper which also noted the presence of Mr A Downward MLA. The program included events such as an obstacle race, three-legged races, age races for boys and for girls, a wheel barrow race, a married ladies’ race, a chopping contest and a donkey race. There were also events that included horses. The Butter Factory Picnic Day was one of the social highlights of the district for just over a decade.
Local school children were given a holiday so that they could participate.
Success turns to failure
The success of the dairying venture was not to last. The good seasons of the 1890s were followed by a spell of dry weather in the early 1900s that affected the milk supply. By 1902 the butter factory had a total output of 55,711 pounds of butter of which 6.5 tons was exported to London and 18.5 tons was sold locally. The milk suppliers were getting 3d (three pence) per gallon, a figure some thought unsatisfactory. They asked for an increase to 5d but this was turned down.
At the June meeting, it was recorded that 1902 had been an unfavourable season. There had been a ‘serious mortality of milch cows in the district’ with a subsequent drop in the milk supply.
In 1906 profit from the factory had dropped from £1,678 to £1,012. It was decided to close the Shoreham creamery for the months of April, May, June, July and August. The company hoped to restart in September.
At the annual meeting of the Mornington Butter Factory in 1908 it was reported that the factory would close. The dry season and subsequent scarcity of grass had had a paralysing effect on the dairy industry. The factory would not re-open until supplies were guaranteed.
Unfortunately, dry seasons continued to make butter production unprofitable and the butter factory and creameries supplying it remained closed.
The building that had been the butter factory stood in Boundary Road until it was finally demolished in 1960.
References:
Information from contemporary local newspapers via Trove and from the Flinders District Historical Society.
Peninsula Essence June 2025