The Andrews Labor Government has helped secure a $24.5 million expansion of Burra Foods in Korumburra in a project that will increase exports and create another 39 jobs across the dairy supply chain.
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 formula direct to the Chinese market, removing the need to can and label offshore – increasing profits and maintaining our dairy industry’s position as a major global exporter.
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, as well as 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:
- A new building to house the upgraded canning and repacking lines
- Plant and equipment for powder handling and blending
- Utility upgrades and external infrastructure
The project will increase profits from exports 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 South Gippsland economy.
The Labor 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.
Quotes attributable to Minister for Agriculture and Regional Development Jaala Pulford
“This is exactly the news the dairy industry in South Gippsland needs to hear. We welcome this huge investment from Burra Foods and are proud to play our part in helping create 39 new jobs.”
“This has been a difficult time for many people with the Murray Goulburn milk price shock and redundancies. It’s nice to share some positive news and have confidence about our dairy industry’s future.”
Quote attributable to Member for Eastern Victoria Harriet Shing
“This is a really important investment in the Gippsland dairy industry that will provide jobs and economic returns in a sector that has done it tough over the last 18 months. Our support for the industry is unwavering and I look forward to seeing more of our world class product being exported on the international stage.”
Reviewed 19 August 2020