THE ongoing two-stage development of an old potato chip factory near Tantanoola in the state’s South East is set to spark local job opportunities and stimulate the local dairy industry.
Blue Lake Dairy Company plans to mix a base powder with ingredients sourced from Vic at its refitted plant to produce formula milk for infants and adults in stage one, before exporting powdered milk to a range of countries, including China, in stage two.
In the second stage, the company plans on sourcing liquid milk from local dairyfarmers to produce powdered milk.
The factory, which has been fitted out with high-tech processing equipment and has the potential to be extended further, has created a lot of interest in the local community.
Blue Lake Dairy assistant operations director Sarah Barnett said the company had already employed about 15 casual and full-time employees from the local area.
She estimated 60 jobs would be created for locals by the end of stage one and more than 100 by the completion of stage two.
“We have also spent a lot of money for local subcontractors to help with the fit-out of the factory and take care of other parts of the project including the plumbing, electricity, the building structure and the water supply,” she said.
“A lot of local companies have already benefited from our business.”
The first batch of stage one formula milk was set to be processed in early August, but technical difficulties delayed that process.
Ms Barnett said the company had to earn processing approval from the Dairy Authority of SA.
She said DASA had inspected the plant and was very impressed with the set up, and would visit again in early September.
“Once we get the approval from the DASA we will be able to produce for the domestic market, then we can apply for an export licence from the agricultural department,” she said.
“In stage one we buy the base milk powder from Australia, and can import from other countries if needed.”
BLD shareholders have invested $15 million in the first stage of the project, with a further $50m to be invested in stage two.
Builders and engineers have been hard at work since February, fitting out the factory with state-of-the-art storage tanks, and processing and packaging equipment.
Ms Barnett said the facility would have a production capacity of 20,000 tonnes of powdered milk upon completion, with local dairyfarmers approaching the company to express interest in supplying liquid milk.
Though it was too early to agree to long-term stage two supply contracts with dairyfarmers, according to Ms Barnett, the company has already secured a year-long stage one customer contract. She said they were also a potential stage two customer.
With a strict production approval process, the company has placed a huge emphasis on maintaining a spotless factory.
“Because we are producing baby milk powder, the environment we are making it in has to have a high level of cleanliness,” Ms Barnett said.
“We don’t generate any wastewater, we don’t generate much rubbish, only packaging materials, most of which will be recycled.
“For this type of business to produce so little waste is something that we are very proud of.”
