Part of a larger AU$127m (US$117m, €86m) investment announced last month, the expansion will increase capacity at its Koroit plant, which currently produces around AU$600m (US$554m, €406m) of dairy products, including powders for infant formula.
“Among the products that are driving demand are nutritional milk powders, particularly baby and follow-on formula for toddlers,” said Murray Goulburn managing director, Gary Helou.
“Global demand for infant formula is expected to increase by more than 4% in 2017. Follow-on formula is expected to grow by more than 6% and growing-up milk powder will exceed 7% growth.”
“This investment supports Devondale Murray Goulburn’s journey to become the first choice dairy foods supplier to customers and consumers in Australia and overseas, and represents an important step towards delivering on our commitment to significantly increase underlying farm gate returns for MG suppliers," he added.
Work to expand the facility, which will involve the extension of existing lines, is already underway.
Murray Goulburn expects the expanded line to be fully operational by May 2015.