Construction of a $40 million long life milk facility, a joint venture between Freedom Foods Group and Australian Consolidated Milk, is underway at Shepparton in northern Victoria.
The UHT facility, which is due to begin operating by November, is expected to create 100 jobs and support 200 dairy farms in the Goulburn Valley. The UHT milk is being produced for the export market, to tap rising demand in Asia.
It will initially produce 250ml portion pack and 1 litre UHT products, and its capacity will be up to 100 million litres. The facility will be based on Tetra Pak processing and packaging capabilities with a focus on cost efficiency. It will also be more energy efficient and use much less water than existing UHT facilities, according to Freedom Foods.
Freedom Foods is best known as a manufacturer of allergen-free products including dairy alternatives, but it is also a 17 per cent shareholder in the A2 Corporation, which is preparing to make its first foray into the Asian infant formula market.
A2 has already shipped its first batch of formula to China and this is due to be available for sale by November.
Earlier this year Fonterra also announced UHT export plans. The NZ dairy giant is investing $100 million in a new processing plant for long-life milk at its Waitoa site in the Waikato.
According to Fonterra, the new plant will enable it to increase its UHT production by 100 per cent over the next few years.
The new Freedom Foods facility will make UHT products for export to Asia.
