Perich to invest $100m in Australian dairy operations
Perich Group in Australia is planning to invest around $100m in its dairy operations, in order to cater to the increasing demand for milk products across Asia.
The company plans to construct new milk manufacturing plants, develop new products and acquire dairy farms, The Australian reported.
It will also encourage farmers to return to the dairy industry and resume export operations.
Perich Group managing director Tony Perich said: "Now we are encouraging farmers to come back into the industry by exporting overseas. We do believe there is a big market for UHT and long-life milk. If you have a modern factory and keep your costs down, I believe you can certainly compete in the market overseas."
Perich's majority owned food company Freedom Foods owns a stake in the New Zealand-listed A2 Milk Corporation, which produces high protein milk.
Earlier in April, Freedom's Pactum Dairy agreed to supply long-life milk to Chinese establishment Bright Dairy.
Pactum will open a new site in Ingleburn in 2015 which will expand its Sydney operations. It is also increasing production capacity at its Shepparton plant in Victoria.
Image: Perich Group to construct new milk manufacturing plants in Australia. Photo: courtesy of Naypong / FreeDigitalPhotos.net.