Hi there,
Have had a lot of experience with Demodex, being a vet nurse.
The first thing to understand is that Demodex mite's can be found present in prefactly healthy skin. It only becomes a issue when the immune system isn't at it's optimum eg in a puppy. The immune system kill's the mites as they breed and stop's them getting to an undesirable level under the skin.
(pointless bit of info - 1 in 5 people have Demodex normally living in there eye brows)
Ivomec is very safe when used correctly. In-fact derivatives of Ivomec are used vastly throughout the pet industry in many medications including horse wormers, heartworm preventives, flea treatments and even as a fish wormer.
Your Vet will possibly prescribe Ivomec oral for sheep and this should work well as a treatment (although it may take a couple of months). Will it run it's course??? Most likely, but this will take longer.
The main thing to remember is that in any situation regarding your animals health, your vet is in the best position to advise you on what to do. They have seen your pet and know it's history. Build a relationship with your chosen vet.
Now for the feeding. It is very important to feed your puppy the correct and BALANCED diet. The only way to do this is to feed a super premium pet food designed for puppys (eg. Advance, Eukanuba, Pro Plan, Royal Canin, Hills Science, Eagle Pack). If an owner chooses to make there own diet based on meat and supplements or anything else (eg carrots, wheatbix) then you can bet your bottom dollar it will NOT be correctly balanced.
Good Luck