Two months ago, Freedom Foods' Pactum Dairy Group commissioned a new $45m UHT (aseptic) dairy beverage facility in the northern Victorian city of Shepparton for manufacture of high value added dairy beverages for key customers in China and SE Asia.The facility has initial capacity for 100m litres of dairy milk production, with capability to be increased up to 300m litres in the longer term.
That investment is already proving its worth. Pactum Dairy Group (PDG) has now signed a strategic supply supply agreement with China's Bright Dairy.
Managing director of Freedom Foods, Rory Macleod stated, "Australia has a unique advantage in the supply and manufacture of high quality premium agriculture based foods. With increasing demand from markets in China and SE Asia for high quality value added product, Australia through companies such as Pactum, is well placed to play an important role in this supply chain."
Australia in general, and PDG in particular, are able to provide high quality dairy milk at a competitive world price. PDG's state of the art low cost manufacturing assets in UHT (long life) packaging formats has given it a competitive edge for the long term supply of value added dairy milk products. Its focus is in supplying key markets such as China and SE Asia.
Bright Dairy is one of China's largest dairy producers. Its products include fresh milk, yoghurt, cheese, and powder products. It sells these products under six brands, including Excellence Plus and Momchilovtsi (China's best known fermented UHT yogurt drink). These high quality brands are distributed all over China through 400 distributors and in more than 400,000 sales outlets. Total sales in FY 2013 were US$2.6 billion.
"We are pleased to be aligned with what is recognised as a market leading, high quality company with the resources and capability to market and distribute premium dairy products. PDG will look to further building on its relationship with Bright Dairy in the longer term as it expands its product and market presence," Macleod added.
"We also would like to acknowledge through this process, the support of Australian Government including the Australian Federal Government and the Victoria State Government in their efforts to assist companies in building a competitive future in supply of high quality food products.
"In the future, enhanced trade arrangements between Australia and China will further increase trade between our two countries and build a stronger strategic alignment for the benefit of both countries.
The signing ceremony was the first official function overseen by China's Premier Li Keqiang and Australia's Prime Minister Tony Abbott after the leaders met on the southern Chinese coastal city of Sanya on the island of Hainan.
