Victorian milk to help Bega break ground in China
Minister for Agriculture and Food Security Peter Walsh has welcomed a supply agreement that will see a major Australian dairy brand supply UHT milk to western China.
Bega Cheese will supply southwest China’s largest retail group, Chongqing General Trading Group (CGTG), with Bega branded UHT milk produced in Australia for distribution in China.
Mr Walsh met with representatives from CGTG and Bega in China on Wednesday as part of the Victorian Coalition Government‘s latest trade mission
“This supply agreement will see more than 20 million litres of milk packaged annually for the Chinese market when operating at full capacity,” he said.
“The majority of the milk to supply the UHT product to China will be sourced from Victoria, and as the business grows it is possible that additional processing capacity may be required.
“China is the world’s biggest dairy importer and CGTG is a leader in import trade, making it an ideal partner for Victoria’s export-oriented dairy and meat industries.
CGTG is the largest retail group in southwest China with annual sales totaling AUD $9.8 billion and a 100,000 strong workforce.
Bega Cheese chief executive officer Aidan Coleman said the company was pleased to form the partnership with CGTG and it was a strong endorsement of the reputation of the quality of Bega’s product and the biosecurity of Australia as a dairy producing nation.
“We see this as a first step in developing a comprehensive UHT offering in the future,” Mr Coleman said.
