New announcements are good news for Victoria’s dairy industry

Victoria’s dairy industry is set to benefit from a new international deal by Fonterra and strong financial results from Murray-Goulburn.

Fonterra, a New Zealand dairy cooperative, and one of China’s leading infant food manufacturers Beingmate are planning to enter into a global partnership.

The new partnership will lead to a fully integrated supply chain from farms and manufacturing sites in New Zealand, Australia and Europe to Chinese supermarkets.

China is Fonterra’s top market and the infant formula market there is currently NZ$18 billion. This is expected to increase to NZ$33 billion by 2017.

Murray-Gouburn (MG), Australia’s largest dairy foods company, also released its 2013/14 financial year results this week. Record sales revenue was announced, as well as farm gate milk price and milk supply growth.

MG’s revenues for the year totalled $2.917 billion, an increase of 22 per cent over the previous financial year.

Minister for Agriculture and Food Security Peter Walsh said both of the announcements are confidence boosters for the dairy industry in Victoria.

“The Victorian Coalition Government is committed to boosting the productivity and profitability of our dairy industry, and we are actively working with the industry to get more Victorian produce into the rapidly expanding high value consumer markets of Asia,” Mr Walsh said in an August 27 press release.

“Victoria is cementing its position as Australia’s dairy powerhouse. Last year we exported $1.85 billion of dairy product, which was 86 per cent of the nation’s total.”

Mr Walsh also discussed the work the State Government was doing to create more employment in the region, such as jobs in the food and beverage industry and product development.

Government initiatives include the Food to Asia Action Plan and the Growing Food and Fibre programme. The aim of the Victorian Government is to improve the state’s food and fibre production two-fold by 2030.

They hope to achieve this aim by conducting strategic research and development while also actively engaging with international markets.