Devondale-Murray Goulburn to supply Danone with growing-up milk powder base

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Murray Goulburn to supply Danone with growing-up milk powder base
Australian dairy cooperative Devondale-Murray Goulburn (Devondale-MG) has entered into a five-year deal with Danone, to supply the French dairy giant with 50,000 tonnes of growing-up milk powders (GUMPs) base.

In-line with the deal, Devondale-MG intends to invest around A$2.5m ($2.2m, €1.7m)to increase the processing capacity of its Koroit, Victoria plant.

Commenting, Devondale-MG managing director, Gary Helou, said that the investment would enable the Victoria-based dairy cooperative to meet rapidly increasing demand for GUMPs from Asian.

“Over the past three years, Devondale-MG has experienced strong and sustainable increases in demand for its ingredients from Danone’s nutrition division, driven by rising Asian demand for GUMPs, and nutritional powders,”​ said Helou.

“Partnering with Danone offers Devondale-MG a significant opportunity for growth in an important line of product for our Co-operative. We are increasingly focusing on producing higher value and speciality ingredients such as GUMPs, as they provide higher margins and reduce our exposure to the more price volatile commodity products.”

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