Mitsubishi claims new dairy stake will help it hit Japanese markets

By Ben Bouckley

- Last updated on GMT

Related tags: Milk, Powdered milk

Mitsubishi claims new dairy stake will help it hit Japanese markets
Japanese giant Mitsubishi says it new agreement to acquire a controlling 24% stake in Australia-based Tasmanian Dairy Products will help it expand its dairy manufacturing business and serve the Japanese market.

Australian dairy co-operative Murray Goulburn sold the stake to Mitsubishi, but will remain the majority shareholder of Tasmanian Dairy Products with a 56.1% stake; local Tasmanian investors will hold 19.9% of shares.

Murray Goulburn MD Gary Helou said the co-operative had worked closely in the past with Mitsubishi as a dairy ingredients customer and investment partner in several manufacturing JVs.

He said: "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."

As a new AUS $75m (€60m) JV, Tasmanian Dairy Products' plant is expected to start production this September and will supply dairy products to Asia and the Middle East, with a 250m litre per year milk processing capacity.

Outputs from the plant - situated in Smithton, northwest Tasmania - will include whole milk powder, skimmed milk powder and anhydrous milk fat, and the facility will be supplied by local farmers. 

Mitsubishi (better known on a group level for its cars and electronics) said the deal would help it strengthen its supply chain, expand its dairy manufacturing business, and supply products to Asian markets including Japan.

Related topics: Manufacturers

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