Mitsubishi teams up with MG to process Tasmanian milk

Murray Goulburn Co-operative (MG) has announced it will form a strategic partnership with Mitsubishi Corporation in Tasmanian Dairy Products (TDP). Under the terms of the agreement, MG has sold Mitsubishi a 24% stake in TDP.

MG will remain the majority shareholder, with a 56.1% stake and local Tasmanian investors holding 19.9%.

The $75 million dairy processing joint venture will be capable of processing 250 million litres of milk into dairy food ingredients to supply the rapidly growing dairy markets in Asia and the Middle East.

“The TDP processing plant at Smithton is nearing completion and will be operational in the second half of this year,” said MG Managing Director Gary Helou. “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.”