Warnambool Cheese & Butter have signed an agreement to supply premium milk power to Mitsubishi for the next three years.
According to the company, while the initial agreement is only for three years, there are provisions to extend the term.
The milk powders provided will be used in the manufacture of high quality milk based beverages and other dairy products for the Japanese market.
David Lord, WCB's CEO said the company is delighted with the agreement.
"WCB has enjoyed a mutually beneficial supply relationship with the Mitsubishi Corporation over the years and we are pleased to continue our association through this agreement," Lord said.
"This latest agreement is a direct result of our decision this year to upgrade our skim milk powder drier to enable production of higher specification powders, and reflects our stated strategy of targeting premium dairy productions and customer specific applications."
Mitsubishi's general manager of the dairy food unit within the Foods Products said the company "looks forward to working with WCB in this capacity and providing high quality, safe, and nutritious milk products to our customers in Japan".
The agreement came into effect on 12 November and includes exclusivity agreements by WCB, and annual volume and marketing commitments by Mitsubishi.