Victorian Government has helped secure a A$24.5 million expansion of Burra Foods in Korumburra – located in the heart of South Gippsland – in a project that will increase exports and create another 39 jobs across the dairy supply chain.

The investment will develop an infant formula canning and packing line at Korumburra, representing a significant new investment in manufacturing and value adding in the Victorian dairy industry.

The expansion will allow Burra Foods to export formula direct to the Chinese market, removing the need to can and label offshore – increasing profits and maintaining our dairy industry’s position as a major global exporter.

The project will enable Burra Foods to shift production of milk powder in bulk 25kg bags, to consumer packs of 400 gram and 800 gram cans, suitable for specific export markets such as China.

It will also enable increased production of other powdered milk products including adult, student and pregnancy powders, as well as high protein skim and full cream milk, which will maximise the revenue and economy of scale from the existing manufacturing equipment.

The A$24.5 million project comprises:

  • a new building to house the upgraded canning and repacking lines
  • plant and equipment for powder handling and blending
  • utility upgrades and external infrastructure.

The project will increase profits from exports as it becomes further incorporated into a global supply chain, leading to the potential for better milk pricing for dairy farmers and suppliers.

Burra Foods is the largest employer in Korumburra and an important business for the South Gippsland economy.