Australia’s dairy food company Devondale Murray Goulburn has invested A$19m ($17.5m) in the expansion of its Koroit facility, in a move to cater to the growing demand for infant formula powder.
The Koroit site currently produces mainly export destined dairy products including powders for infant nutrition and bulk ingredients; retail butter, bulk butter and retail milk powder.
Devondale Murray Goulburn managing director Gary Helou said among the products that are driving demand are nutritional milk powders, particularly baby and follow - on formula for toddlers.
"Global demand for infant formula is expected to increase by more than four per cent in 2017. Fo llow - on formula is expected to grow by mo re than six percent and growing - up milk powder will exceed seven per cent growth," Helou said.
The latest investment at Koroit plant will increase the capacity to produce these products with the installation of the necessary capability on existing production lines, and is a part of a larger $127m capital investment announced by the company earlier this month.
Work has commenced on the facility which is expected to be fully operational by May next year.
