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Chinese-Owned Blue Lake Dairy Seeks Permit For $15M Plant
March 24, 2016

Chinese-owned Blue Lake Dairy Company has lodged an application for a $15 million milk processing plant in Tantanoola, near Mount Gambier in South Australia.The processing plant, which is due to start operation in June or July if the Wattle Range Council approves the permit, will export most of the milk powder and infant formulas to China.

In a second, $50 million stage, the company will invest in technology to create its own base milk powder.

Blue Lake Dairy Company spokeswoman Sarah Barnett said the company had agreements with several contractors to provide the factory with milk from farms in Victoria and South Australia.

The dairy will be developed at the former Star Fries potato chip plant. The plant operated for a few months before the collapse of Southern Foods Group in 2005. Since then, it has been a timber processing plant and a lobster depot.

Jesse Manuel, associate director for rural and agribusiness transactions at Colliers International, said another milk buyer in the marketplace would benefit its dairy clients and help attract investors wanting farms in the region.

“I think it’s fair to say that dairy production, and now processing, is very well placed to be a major economic contributor to the south-east region long term,” Mr Manuel said.

The Midfield Group last year announced plans for a $60 million dairy plant at the former McCain Foods potato chip factory in Penola.

Colliers International is marketing the 650-hectare Acacia Downs dairy farm near Frances with an asking price of about $6 million.

By: Larry Schlesinger
Source: Adf.farmonline.com.au



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