South Gippsland based dairy processor Burra foods have announced that they will commence production of nutritional milk powders next year.
The addition of milk powders to the company’s portfolio has also attracted an initial $20m investment to fund the expansion and upgrade to the company's Korumburra plant.
Grant Crothers, chief executive of Burra Foods said that the decision to expand its operations into milk powder production is largely attributed to growing global demand, especially within Asia.
“The global outlook for dairy is strong, particularly the demand for high quality complex products such as infant formula, which is being driven largely by the Chinese market,'' said Crothers.
"We have a proven success in international marketing, a stable and high quality milk supply and many complementary assets so are well placed to enhance production capabilities and enter this high value, challenging market.
"This expansion is a strategic entry into a key market and we expect further investment in additional capability in the medium term.''
Dale O’Neill, general manger of Burra Foods said that the planning approval for the upgrades from the state government will enable the company to reach its strategic goals.
"This announcement underpins our strategy of continually improving the value of our product basket and growing the value, not necessarily the volume of milk processed on the site," he said.
"Infrastructure in South Gippsland has been less than ideal for 'world's best' manufacturing and continues to be sub-optimal however if we can continue to secure State Government support for upgrades we will achieve our potential while the community will benefit from superior services."