TWO Chinese-owned dairy plants will be set up in south-west Victoria as part of a grand plan to secure the Australian milk market.
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Investment firm Linear Capital announced it has finalised a massive deal with the owners of more than 50 of the region's farms, with the next stage involving the set up of processing plants.
The location of the two plants has not been revealed although it appears the Chinese-backed company will seek to establish new sites rather than acquire existing factories.
In a statement the group said the masterplan will "secure the financial future for (farming) families involved and also keep them employed in running the farms after the acquisition is complete."
"The new company will source milk from the acquired farms. It will also build two new processing plants in western Victoria and transform Australian milk into a series of value added products and brands before exporting overseas."
The Victorian Farmers Federation has supported the large-scale interest from the Chinese group with rival lobby group Farmer Power expressing doubts over the impact of such a far-reaching deal.