A proposal to build a dairy processing plant in southwest Victoria is “a continuation of confidence in the industry”, the industry’s peak lobby group says.
Australian Dairy Farmers president Noel Campbell praised the plan by Midfield Meats founder Colin McKenna to build a milk powder plant in Warrnambool but said he wouldn’t comment further without more information.
Mr McKenna confirmed speculation at the weekend when he said he was seeking to purchase crown land to build the plant in the regional city.
On Monday, Mr McKenna said he hadn’t “firmed up” details but he would like to have the plant up and running in 12 to 18 months.
He said the plant would seek its own suppliers but stressed it wasn’t about a “milk war” with existing processors. Rather, he wanted to promote organic milk production growth.
“There’s so much untapped land and resources in the Western District and south east of South Australia, there is no doubt new production will come online,” Mr McKenna said.
Targeting the overseas market, Mr McKenna said his regular Midfield Meats clients also had daily dealings with dairy so the two businesses were a good fit.
The west Victorian dairy industry has been buoyed by an injection of more than $500 million recently when Canadian giant Saputo acquired a majority stake in Warrnambool Cheese and Butter.
The news of the dairy processing facility followed the announcement of a $20 million investment in the Midfield Meats site for a cold store and rendering plant.
This investment, which includes $1.5 million from the Victorian Government, would create more than 200 jobs with plans for expansion of the business, which presently employs 1100 people.
A train network would deliver product to the Port of Melbourne rather than the present practice of using trucks to take it to a cold store in Laverton.
Victorian Premier and South West Coast member Denis Napthine said the project would include a $15 million cold store, while current refrigeration facilities would receive a $2 million upgrade.
Another $3 million would be spent to allow the rendering plant to treat its waste water and dispose of it through a trade waste connection.
Dr Napthine said construction was expected to begin later this year and would boost production of meat products by up to 30 per cent.
Source: The Weekly Times