Chinese company Blue Lake Dairy (BLD) has applied for a permit to create a $15 million milk processing and packaging plant in Tantanoola, South Australia.
The application was lodged to the Wattle Range City Council to transform an old potato chip factory into the milk processing plant. If approved, operations will begin in June or July with most of the powdered milk and formula products exported to China.
The dairy plant is the first of a two-part project by BLD, the second is a $50 million investment into technology to produce their own base milk powder.
According to the Financial Review, Sarah Barnett, BLD’s spokesperson, the company had agreements to receive milk from South Australian and Victorian farms.
The Associate Director for rural and agribusiness transactions at Colliers International Jesse Manual said that the dairy clients would benefit from another milk buyer and would bring more farm investors to the region.
“I think it’s fair to say that dairy production, and now processing, is very well placed to be a major economic contributor to the south-east region long term.”