Japanese conglomerate Mitsubishi has invested in Australian dairy ingredients supplier Tasmanian Dairy Products.
The company has acquired 24% of Tasmanian Dairy Products from the firm's largest shareholder Murray Goulburn, the Australian dairy processor.
Tasmanian Dairy Products, which was set up last year, has yet to start production but will supply customers in Asia.
Demand for dairy products in Asia is booming and processors across the world are targeting the region. Dairy brand owners and ingredient suppliers in Australia and New Zealand are paying particular attention to markets like China and would hope to have an advantage on their international competitors due to their proximity to the region.
Tasmanian Dairy Products plans to start production in September, with Mitsubishi as one of its customers. Murray Goulrburn will remain the majority shareholder in the business.
Mitsubishi Corporation partners with MG to invest in Tasmanian Dairy Products (TDP)
Murray Goulburn Co-operative (MG) today announced it has reached an agreement with Mitsubishi Corporation to forge a strategic partnership in Tasmanian Dairy Products Co. Ltd (TDP).
Announced in September 2011, TDP is a $75 million dairy processing joint-venture in northwest Tasmania. TDP will have the capacity to process approximately 250 million litres of milk into high quality dairy food ingredients to supply the rapidly growing dairy markets in Asia and the Middle East.
Under the terms of agreement, MG has sold Mitsubishi Corporation a 24% stake in TDP with MG remaining the majority shareholder at 56.1% and local Tasmanian investors holding 19.9%.
In a letter to MG shareholders, MG Managing Director Gary Helou said MG had worked closely with Mitsubishi Corporation for more than 40 years as a valued customer of dairy ingredients, and as a strategic investment partner in various manufacturing joint-ventures.
"We are delighted to be partnering with Mitsubishi Corporation in this important project and look forward to working with them and our other partners in making this venture a success," Mr Helou said.
"The TDP processing plant at Smithton is nearing completion and will be operational in the second half of this year. TDP will manufacture dairy food ingredients, mainly whole milk powder, for export to key MG customers including Mitsubishi.
"Tasmanian dairy farmers have already shown tremendous support for the new venture including many in the northwest of the state that have committed to supplying the new company," Mr Helou said.
