WARRNAMBOOL-based Midfield Group is to build a milk processing plant at Penola in South Australia as part of an ambitious plan to greatly boost the region’s dairy industry.
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The $60 million plant, which will employ about 50 people, will be built on the former McCain Foods potato processing site, which Midfield bought several months ago.
Midfield managing director Colin McKenna and South Australian Premier Jay Weatherill announced the plan yesterday on ABC Radio.
“We see that there’s a tremendous opportunity to grow our company, particularly in the dairy industry of Australia,” Mr McKenna said.
“As we all know the south-east in particular is in the middle of the food bowl for Asia. World demand, dairy in particular, is on everybody’s lips.”
He said the south-east’s sound rainfall and temperate climate made it perfect for growth in the dairy industry.
The plant will initially manufacture milk powder.
Mr Weatherill said the vision outlined by the Midfield Group was “incredibly persuasive”.
“They speak of Victoria at the moment producing about six billion litres of milk and South Australia producing about 500 million litres, and an ambition to grow South Australia into something similar to the western districts of Victoria,” he said.
With western Victoria now producing about two billion litres annually, this would mean quadrupling South Australian production.
Midfield recently received planning permission to build a milk processing plant near its Merrivale abattoir in Warrnambool. The future of the proposal hinges on a VCAT decision on upgrading the Merrivale rendering plant, expected in May. Council will then vote on the matter.
