New Milk Facility Opens Asia Markets To Australian Dairy Farmers

Thursday, July 14th, 2016 | 539 Views

A new dairy plant, as part of the joint venture between Au Lait Australia and Nature One Dairy, will establish a direct link for Darling Downs dairy farmers to the Asian dairy market.

The factory, set to open next year, is part of a Toowoomba Integrated Milk Project, and will consist of an AU$35-million (US$26.7 million) infant formula facility. It is expected to export 30 million tins a year.

The project also plans to export fresh milk to the Asian market, supplying two jumbo jets a day of fresh milk. The supply will be flown out of Toowoomba’s new private international airport, the Wellcamp Airport. It adjoins the Wellcamp Business Park, where the factory is located.

Managing director of Au Lait Australia Steve Laracy is optimistic about the infant formula market in Asia. “Infant formula is in very large demand in China with the change from the [one to two] child policy in China, statistics suggest that there’ll be a birth rate going from 16 million per annum to 22 million per annum,” he said.

Revealing the plans for the new dairy plant, he remarked: “What we’re planning to do is about half of our raw milk supply would go to the production of infant formula and of the remaining portion would be fresh milk and UHT.”

For now, Guangzhou and Hong Kong are the likely destinations for the dairy products.

Mr Laracy said Darling Downs farmers would provide the facility about 300 kilolitres daily. “They’re getting a much better deal out of this. What we’re talking about is in excess of 60 cents a litre that we’d be offering farmers. In Queensland, we’re generally in the 50-60 cents range and down south they’re in the late 30s to low 40s and they’re just unsustainable prices, really.”

Milk would be packaged in bottles or satchels prior to departure, Mr Laracy said.

“Because of the location of Wellcamp, we may not even need a cold store on location at the airport terminal itself. We can take it down from our site, which is quite literally no more than a 900 metre drive from our site to the runway,” he added.