A $60 MILLION project for a new milk processing facility in Penola has received a $2m grant from the state government’s regional development fund.
The new facility, based at the former Safries site and operated by Midfield Meat International, will produce a range of products including whole milk powder, skim milk powder, and cream.
The project will create 34 ongoing full time jobs, as well as 80 jobs during construction period.
Regional Development Minister Geoff Brock said this project would provide a timely economic boost for the dairy industry in the South East.
“Growing demand from the Chinese market and other new and established markets for milk powder makes this an opportune investment, establishing the region as a key supplier to global markets,” he said.
“This new facility will further enhance the Limestone Coast’s agricultural food production, its reputation for premium food and wine and its global competitiveness.”
Director of Dairy Operations of Midfield Meat International Daniel Aarons said the project would position Midfield as a significant global supplier in the production, development and marketing of selected products and ingredients for the milk powder industry.
“The milk processing facility will diversify the region’s dairy industry, bringing valuable economic benefits to the region,” he said.
“Midfield already has established relationships with many farmers in the Limestone Coast, so expanding our operations in the region is an obvious step for us.”
SA Dairyfarmers Association acting president Nick Brokenshire said the new facility was good news for the local dairy industry.
”The increase in milk demand to meet the facility’s processing capability, and the resulting production, will have positive flow-on effects across the industry and the region,” he said.