THE slump in international dairy markets has forced Camperdown Dairy International (CDI) to put on hold its plans to build a milk powder plant in the former Bonlac milk factory at Camperdown.

CDI chief executive officer Gavin Evans said the time frame for the plan, which was announced more than two years ago, was “difficult” because of the volatility in the dairy market in the past 18 months.

He did not rule out the company dropping the plan but said it was confident its $500 million strategy for a vertically integrated farm to shop supply chain was correct for the long term.

CDI had also planned to buy up to six farms to convert into intensive dairy operations to provide milk for the factory but so far had only bought one at Frances on the Victorian/South Australian border. The company early last year demolished several buildings at the former Bonlac factory but no construction has taken place.

It had been anticipated the Camperdown factory could provide up to 100 jobs but Corangamite mayor Jo Beard said she hoped there would be further investment in the site.