Shareholders to benefit from expansion

     
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Milk company Murray Goulburn will extend their processing operations with plans to set up a new factory in Tasmania.

Milk processing company Murray Goulburn (MG) will  set up a new  milk processing facility in Smithton Tasmania called Tasmanian Dairy Products (TDP).
With many northern Victorian dairy farmers supplying the company, the announcement is great news.
The new facility will make high specification milk powders and associated products and will process more than 200 million litres of milk per annum.
MGs increased investment in Tasmania is part of the Co-operative's overall strategy to focus on improved returns for dairy farmer shareholders with the key outcomes to include;
Access to a growing milk supply region.
Access to ingredients via TDP to meet growing demands from key customers.
An existing need for new processing assets in Tasmania means the timing of this investment is right positively adding to shareholder returns with minimal risk..
Chairman Grant Davies said MG is confident the TDP joint venture model will maximise opportunities by attracting the support of local dairy farmers and the support of local and international investors.
Tasmanian milk production has been growing solidly in recent years and this is forecast to
continue. Consequently new processing capacity is required in the state, Mr Davies said.
Following this investment MG will have access to milk supply in Victoria, South Australia, New South Wales and Tasmania (via TDP).
Mr Davies said while new processing capacity is not required in Victoria at the moment, the company will continue to invest in Victorian-based sites to maximize returns via product mix, product quality and cost efficiency.
Recent investments such as cheese-line at Cobram, the Danone yoghurt joint venture
at Kiewa and the utilities upgrade at Maffra  are just some of the important capital
investments we are making across the company.
The Board is very pleased to have finalised a growth strategy in Tasmania that fits within the Cooperatives overall goals and strategy. We look forward to talking to you more about this and other strategies at our future supplier forums.
Tasmanian dairy farmers annually produce 720 million litres but this figure has been growing by five per cent a year.

 

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