Dairy processor Murray Goulburn will invest $127 million in cheese and infant formula factories in Victoria and Tasmania.
The investment includes $70 million on a new cheese cut and wrap factory at Cobram, Victoria and forms part of the processor’s plans to boost exports, especially value-added cheese and infant nutrition, to Asia, the ABC reports.
"Our objective is to target Australian milk to the highest growth markets in Asia," Murray Goulburn managing director, Gary Helou said.
Helou hopes Murray Goulburn’s investment will encourage dairy farmers to expand their operations and increase milk production, a sentiment that echoes that of Chobani Australia's managing director, Peter Meek, who recently told Food magazine he's concerned Australia's milk supply is not increasing.
“Easily the biggest issue is that we’ve been in long term decline for milk creation and that needs to turn around. Farming needs to be seen as a core industry for Australia. I’m not sure it is yet. There’s certainly a lot of talk about dairy and particularly dairy being the next big growth opportunity for the country.
“Nothing would please me more to see significant growth in terms of dairy production. Anything that supports driving more milk being available is something we’d always look to support," Meek said.