HUDSON -- Hansen's Farm Fresh Dairy milk is in stores and selling out.

Within hours of receiving the first shipment of milk last week, fresh off the Jay and Jeanne Hansen farm just east of here, Randall's Stop 'N Shop in Hudson sold out three-dozen gallon jugs. At Roots Market in Cedar Falls, the only other retail outlet to currently carry the label, only two gallons out of 22 remained by Thursday.

It's good news for the couple who spent several hundred thousand dollars to build an on-farm milk processing and bottling facility to capture more value for their product and allow their children -- Brent, Brad, Blair and Blake -- to return to the farm. After months of production delays, the excitement of having a family-run dairy back in the Cedar Valley for the first time in 25 years apparently didn't subside.

While the first sales were small, the initial demand speaks volumes.

"The initial comments were they (families) tasted ours and used the other milk in the fridge for cooking. If they (parents) tried to switch back to the regular milk, the kids wouldn't drink it," Jay Hansen said.

The maiden production run consisted of 200 gallons. The majority were given away as samples to potential customers to pique interest, and the rest were sold at the local markets.

On Wednesday, 400 more gallons were bottled and shipped off to stores, businesses and homes. Demand will dictate production at first, with a goal of 5,000 gallons a week.

"I thought the response was very good. People were happy it was finally here. Some grabbed a gallon or two without even trying it," said D.J. Holbach, Randall's manager.

At $3 a gallon for 3.5 percent whole milk, the Hansens believe their product is competitively priced. They more than double what it's worth as a bulk commodity. Brand names like Anderson Erickson whole milk at Randall's was priced at $3.19 a gallon. Randall's right now is selling the Hansens' milk at cost, though Roots is charging $4.29 per gallon.

Depending on demand and customer needs, the Hansens will consider making different varieties, like 2 percent or flavored milk. In the meantime, Roots manager Laurie DeGroote is just happy the milk is flowing in.

"I kept hearing, 'Is it here yet? Is the milk here?'" DeGroote said. "Everyone who tasted it bought a gallon. Customers know exactly where the milk is coming from and we want to help local farmers and support Iowa products."

Watching containers of milk with their name on it get filled and head down the conveyer belt to the cooler is gratifying for Jeanne Hansen -- especially after watching her sons pull together to build the creamery, overcoming construction delays and equipment problems.

The original goal was to be bottling by the end of last June. However, a wet spring set back construction, which the family did mostly themselves to save money, and field work took precedence.

Equipment didn't arrive on time, scheduling training was difficult at times, and parts failed during testing. On Wednesday, a part on the new $100,000-plus pasteurizer went out, delaying the second run a couple of hours.

"It's been frustrating. But you expect that with a new business," said Brad, 28, who left a computer teaching job to come home last spring. "I decided if I'm going to work hard, I'm going to get paid for it."

Bulk milk prices plummeted to 27-year-lows in 2002, prompting the family to take the plunge. Selling milk directly to customers was the only way five families could earn enough money off a 240-acre dairy farm.

Brent, 30, and Brad concentrate on bottling and processing. The facility is inspected like any other commercial dairy. Workers wear gloves, hair nets and white coveralls in the creamery.

Raw milk is pumped from the bulk tank into a special stainless steel holding tank in the creamery. It then flows into the pasteurizer, which quickly heats the milk to kill bacteria and then cools it. Then it flows into another holding tank before going to the filler and bottler. Jugs are capped and ride the conveyer belt into the cooler for shipping.

The bottling capacity is 500 gallons per hour. The family's herd of 165 registered Holsteins could produce 1,400 gallons a day. American Milk Processors Inc. buys whatever milk isn't bottled.

The two younger brothers, Blair, 26, and Blake, 25, manage the herd. All the brothers worked in other areas or for other dairies before coming home except Brent. He stayed home and ran a hoof trimming business.

"The kids' desire to come home came first," Jay said, describing why the family risked the farm's equity in the venture. "We have the attitude we can make this happen, so what's the risk? We need 1 to 2 percent of the market share to achieve our goal."

With a superior product and work ethic, he believes they will succeed.

Freshness is the key to taste, the family said. Milk from a morning milking could be in a family's refrigerator that afternoon. At the longest, they said milk would only be sitting in their bulk tank a day or two before being bottled.

Cows are also well cared for, which helps production. For example, a cow recently slipped on ice and hurt her hip. To speed the healing process, she was placed in a special tank filled with water to help her float and take pressure off the hip.

Since the milk isn't homogenized, people need to shake the jug before pouring to dissolve the line of cream that will form. Brent said it tastes more like 2 percent milk than whole because the fat globules aren't broken down as much.

"It's awesome, my kids loved it," DeGroote said. "It doesn't have an aftertaste."

Customers can buy milk at the farm, located on Lincoln Road just off of County Road D-35, or arrange for home or office delivery with orders of $25 or more. They also sell AMPI butter and cheese.

"Often it's the husbands who are the ones stopping by the store on the way home from work to get milk. They can get together, put in an order and we'll deliver it to the business," Jeanne said. "I think they'll like that."

Orders may be placed with the Hansens at 988-9828.