A leading northern Victorian dairy processor says it's in a consolidation phase, after completing the first stages of its plans for its Girgarre plant.
Australian Consolidated Milk chief executive Jason Limbrick said the company had been able to grow both production volumes and staffing.
"We really want to consolidate what we are doing and drive as much efficiency as we can in the products we are making and customers and markets we are dealing with," Mr Limbrick said.
The company manages 500 million litres of milk a year and supplies dairy ingredients to domestic and export markets.
ACM partners with around 300 dairy farmers, almost 10 per cent of Victoria's dairy businesses.
Since the first milk was taken into the Girgarre factory in 2019 ACM had been on a 'steady build' in both products and staff.
"The major part of the construction and commissioning is now complete," Mr Limbrick said.
Stage one involved the installation of spray driers and a butter plant while a cheese plant was part of the second stage.
The company had a 50-50 mix of domestic and export supply.
"We export to various different regions, absolutely there is some volatility in all markets, dairy as well, in the short term.
"But overall, we think dairy and agriculture are really well placed for the short and medium-term.
"We have very strong and record milk prices at the farm gate.
"Obviously there are challenges over input costs - but we have good farmgate milk prices and we have had overall a reasonable run of seasonal conditions over the last 18 months."
ACM's spread of products, diversity and risk left the company 'reasonably well placed' to tackle current market conditions.
He agreed farmers were facing pressure on input costs such as fertiliser, grain, fuel and oil.
Mr Limbrick also acknowledged farm exits, and conversion to alternative land use was driving competition for milk solids, throughout the state.
Labour supply was 'the big issue' right throughout the supply chain, from the farm to the factory.
"It is probably one of the biggest challenges we face, to try and find ways to overcome that.
"All we can do is to return as much value to the farm gate as we can, so it's financially as viable as possible for the farmer."
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Under the Dairy Code of Conduct, processors need to publish all standard form milk supply agreements for the coming financial year by June 1.
ACM had set a weighted average opening price at $8.60 kilogram/Milk Solids.
"Since March, we have reviewed our price monthly, as we head towards the start of the season."
The price would then continue to be reviewed regularly.
"That's based on our fundamentals, the ability to sell product and secure milk supply - our priority has been existing suppliers and we are well placed.
"That will continue to unfold, over the next few months."
Regional Development Minister Mary-Anne Thomas said ACM had exceeded its forecast jobs growth, hiring 65 new workers during the expansion of its Girgarre site.
ACM had been supported by the state government's Regional Jobs Fund.
Ms Thomas said ACM had almost doubled its annual capacity since the new facility was completed just over two years ago and now processed 200 million litres of milk a year at Girgarre.
"We're proud of our investment in ACM's operations in Girgarre which has provided a much-needed boost to the dairy industry, created more local jobs and increased local manufacturing."