Murray Goulburn, Australia’s largest dairy company, is planning a $500 million investment to upgrade its factories to focus on producing ‘customized’ high-value products for export to Asian markets. The dairy co-operative is shifting away from commodity products in a push to strengthen the company’s international presence and increase the farm-gate price to producers. As the Asian middle class grows, demand for high-value goods such as infant formula increases. The shift is expected to drive an increase of $1 per kilogram of milk solids, expected to be paid to producers from 2017. Over the past ten years Australia’s milk production has declined from 12 billion liters to 9 billion liters annually, but Murray Goulburn managing director Mr. Helou believes that the industry can rebound and produce 15 billion liters per year by the end of the decade.
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