SE dairy factory reaches key strategic milestone

Premier Jay Weatherill was on-site at the opening of the Blue Lake Dairy Group’s processing plant at Tantanoola.

Stage one will enable the production of 20,000 tonnes of infant and adult formula, using Vic powdered milk, for the domestic market.

Managing director Wang Xin Xiang said it was an achievement to have the first stage completed, with work expected to begin on stage two – a new $50-million milk drying facility – expected to begin within months.

BLDG assistant operations director Sarah Barnett said it had been a long journey for the company, since its formation in 2015, but it was a nice milestone.

She said a couple of batches had already been produced, but Monday’s official opening marked the start of a significant increase in output.

“Everyone was relieved to get the Dairy Authority SA license,” she said. “I’ve already got the export license application in front of me.”

Ms Barnett said the timing for stage two, which would source liquid milk from local dairyfarmers, would be based on the company gaining its export license and a CNCA license, to export to China.

“We will look at local supply then," she said. “If we can’t get enough local supply, we will expand further.”

Wattle Range Council mayor Peter Gandolfi said it was promising to see stage one completed.

Mr Gandolfi said, when coupled with the Midfield Group plant at Penola, which was also in the Wattle Range Council, it boded well for the local dairy industry.

“Obviously there will be increased demand for milk in the local region,” he said.

“Midfield Group is calling for the equivalent of two-thirds of the milk produced in the SE.

“When there is an increased demand for product, hopefully we will see an upward demand in price at the farmgate.”

Mr Gandolfi said the factory was a “significant investment” in the region.

Stage one is expected to result in an increase in employees from 24 to 60, while stage two will create an additional 90 jobs.

SA Dairyfarmers’ Association chief executive officer Andrew Curtis said it was terrific to see more dairy processors operating in the state, but the benefits to local dairyfarmers would not come until stage two.

“With stage one, it’s really positive to see that BLDG is getting the facility ready and getting markets established,” he said. “There is a lot of opportunity to produce more milk in the SE.”

Mr Curtis said SADA would engage with the company in the lead-up to stage two, expected in 2018, to ensure local dairyfarmers had confidence in long-term planning.