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.”