The Victorian Government has helped to secure a $24.5 million expansion of Burra Foods in Korumburra in a project that will increase exports and create 39 much needed jobs in the dairy industry.
The investment will develop an infant formula canning and packing line at Korumburra, representing a significant
new investment in manufacturing and value adding in the Victorian dairy industry.
The expansion will allow Burra Foods to export tins of formula direct to the Chinese market, removing the need to can and label off shore. This will increase profits and help keep the dairy industry strong in Victoria.
The project will enable Burra Foods to shift production of milk powder in bulk (25kg bags) to consumer packs (400 gram and 800 gram cans) suitable for specific export markets such as China.
It will also enable increased production of other powdered milk products including adult, student and pregnancy powders, high protein skim and full cream milk, which will maximise the revenue and economy of scale from the existing manufacturing equipment.
The $24.5 million project comprises the following:
* Building and road infrastructure and internal infrastructure
* Canning line and repacking line
* Plant and equipment for powder handling and blending
* Utility upgrades and external infrastructure.
The project will increase the export-derived profits of the Korumburra site as it becomes further incorporated into a global supply chain, leading to the potential for better milk pricing for dairy farmers and suppliers.
Burra Foods is the largest employer in Korumburra and an important business for the economy in South Gippsland.
The Government’s assistance with getting this project off the ground follows Murray Goulburn’s recent announcement to cut more than 50 jobs from its Leongatha plant. The new jobs at Burra Foods will be well suited to employees made redundant from Murray Goulburn.
Minister for Regional Development Jaala Pulford:
“This is welcome news for Victoria’s dairy industry, particularly in South Gippsland. We welcome this huge investment from Burra Foods and we are proud to help create 39 new jobs.”
“The Victorian Government stands side by side with our dairy farmers and will continue to invest in innovative projects such as the Burra Foods expansion.”
What Burra Foods had to say
The announcement today that we intend to proceed with the building of an infant formula blending and canning plant at Korumburra is a further sign of our confidence in the industry and our ability to succeed in the category. Led by changing regulations in the Chinese market, the Nutritional Milk Powder category has been volatile in recent times but with persistence and lots of hard work, we have successfully carved out a sustainable niche and built confidence around the future.
The $24.5 million initiative to build blending and canning capability on site is further commitment to South Gippsland and our most significant expansion initiative since 2011. It heralds the introduction of new skills and will enable Burra to deliver ‘consumer ready’ canned products. Combined with increased warehousing capacity the project will generate up to an additional 39 jobs on site as we continue to build the Korumburra factory as a centre of dairy processing excellence.
Support is always welcome and we are delighted to have the Victorian State Government contribute to our investment with The Hon. Jaala Pulford MLC (Minister for Agriculture and Minister for Regional Development) confirming the commitment today. We look forward to local government planning approval in the near future and anticipate that it will be possible to commence site works in the first quarter of 2018. Completion is scheduled for late 2019 and commissioning during 2020, subject to regulatory approvals.