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Dairy Project to Export to China

07 September 2010

AUSTRALIA - A trip by an Australian delegation to the International Investment and Trade Fair in Zhengzhou China has sealed a A$75 million dairy deal.

A memorandum of understanding was signed with the Tianyi Group for a joint venture to produce dairy products for export to China.

According to a report in Country News the plan aims to establish a dairy business in northern Victoria to export the milk products.

Already five farms in Leitchville have been bought with the aim of producing organic milk.

Sustainable Soils and Farms chairman Neil O'Keefe, who was part of the delegation told Country News that discussions were being held with Murray Goulburn Cooperative and Tatura Milk Industries about contract processing of the milk into products for export.

He said that the company that was being established was not looking to build new processing premises but to use already under-used sites.

The Leitchville farm at present milks 350 cows and this number is expected to rise to 500 in the next few months. The farm already supplies Murray Goulburn.

The company is seeking to buy more properties to reach its target of 10 hub farms milking 1000 cows each.

TheCattleSite News Desk


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