April 14, 2014
Pactum Dairy signs supply agreement with China's Bright Dairy
Pactum Dairy Group (PDG), based in Shepparton, Victoria, Australia, has signed a strategic supply agreement with China's Bright Dairy, Food Magazine reports.
The signing ceremony was the first official function overseen by China's premier Li Kegiang and Australia's prime minister Tony Abbott after the leaders met on the island of Hainan.
PDG, part of Freedom Foods Group, has recently commissioned a new US$42.21 million UHT dairy beverage facility in the northern Victorian city of Shepparton for manufacture of high value-added dairy beverages for customers in China and South-East Asia.
The facility will initially have a capacity for 100 million litres of dairy milk production, with the capacity to be increased up to 300 million litres.
Managing director of Freedom Foods Rory Macleod said, "Australia has a unique advantage in the supply and manufacture of high quality, premium agriculture-based foods. With increasing demand from markets in China and South-East Asia for high quality value-added products, Australia through companies such as Pactum, is well placed to play an important role in this supply chain."
Bright Dairy is one of China's largest dairy producers, with products including fresh milk, yogurt, cheese, powder and yogurt. It sells these under six value-added brands, including Excellence Plus and Momchilovtsi.
"We are pleased to be aligned with what is recognised as a market leading, high quality company with the resources and capability to market and distribute premium dairy products. PDG will look to further building on its relationship with Bright Dairy in the longer term as it expands its product and market presence," Macleod said.
China's demand for dairy has been growing, with Bega Cheese saying in February that global prices are being underpinned by China's strong demand for dairy.
In the six months leading up to December, Bega reported an 18% rise in half-year profit, from US$14.91 million to US$17.54 million.