Murray Goulburn to build new factory in VIC to meet export demand

Murray Goulburn has announced the biggest investment in infant formula ‘in a decade’ with a new factory 300 kilometres west of Melbourne.

AAP reports that the Koroit plant will meet supply arrangements with Mead Johnson (USA) and Kalbe Nutritionals (Indonesia), as well as increase output of Devondale Natra Start for export to markets including China.

"Devondale Natra Start infant formula will provide a world-class, Australian product to our consumers, 100 per cent controlled by MG from farm gate to shelf," said managing director Gary Helou in a statement.

"We expect there will be strong consumer support for Devondale Natra Start, particularly in China, where Devondale is already a trusted, leading liquid and consumer milk powders brand."

Fairfax reports that this represents a shift for the country’s biggest milk producer away from commodities to value-added branded products.

The investment includes a 45,000-tonne dryer – allowing it to meet the Mead Johnson and Kalbe contracts, the length of these weren’t given – as well as another 45,000-tonne dryer if there was enough demand.