Murray Goulburn invests in Tasmanian dairy
Australian dairy co-op Murray Goulburn has taken a majority stake in a new milk powder venture in Tasmania.
Murray Goulburn announced it is investing in Tasmanian Dairy Products, a business set up in July 2011 to make milk powder for international markets. The company did not disclose how much it had invested in the venture.
Murray Goulburn Chairman Grant Davies said, “Tasmanian Dairy Products will process milk at a new facility in Smithton in Tasmania, with production scheduled to start in the second half of next year. Other investors in the venture include local and international investors and Tasmanian dairy farmers.”
Mr Davies said the investment would give Murray Goulburn access to a region where milk supplies are growing. He said there could also be “operational benefits via synergies” with the rest of Murray Goulburn’s business.
Davies added that Murray Goulburn had been looking for ways to expand in Tasmania since it acquired Classic Foods in 2007.
The Minister for Primary Industries and Water Bryan Green said Tasmania’s resurgent dairy industry highlighted confidence in the State’s rural sector which among farmers remains the highest in Australia.
Mr Green said, “This is a great opportunity for dairy farmers and will provide a huge boost for the region and the broader Tasmanian economy.”