BROWNES DAIRY will revive the former Brunswick cheese factory in order to produce 6000 tonnes of cheese annually.
The $10 million investment will see manufacturing capacities developed at the south west facility, with a small percentage of the cheese will be available for purchase in WA and the rest to be exported to China as early as this spring.
Brownes Managing Director Tony Girgis said about 15 per cent of the state’s annual dairy supply would be used to reach the 6000 tonne per annum target, which will be reached in three to five years.
WAFarmers Dairy Section President Michael Partridge said the announcement would be welcomed by industry.
“This expansion of manufacturing capabilities is very significant for the state’s dairy industry, as the sector has experienced a difficult couple of years,” Mr Partridge said.
“WAFarmers has worked alongside industry to try to find long-term solutions to managing the variation of milk supply, which has included accessing world markets.
“While Brownes has recognised that this is not a one-fix solution to balancing supply, it will work positively towards safeguarding the future of the WA dairy industry.
“When Shanghai Ground Food Tech purchased Brownes in November last year, we recognised the potential for the business to expand opportunities for dairy exports, particularly if local manufacturing capacities were developed.
“Four months down the track, we are pleased to see that no time has been wasted in securing this project, which will provide greater certainty for producers.”just retailers and processors, but also primary producers. The fact that these margins are not being shared equitably is a demonstration of the uncompetitive nature of the dairy supply chain.”
The Association has reiterated its support for the ACCC’s focus on agricultural related supply chains.