MG said the deal supports the company’s “ongoing push to secure critical mass in the important Australian dairy foods market which will underpin and support the company’s growth plans”.
This cheese contract follows the landmark, ten-year partnership MG commenced with Coles in 2014 to supply daily pasteurised milk for Coles private label brands in Victoria and NSW.
The cheese contract will generate about $130 million in additional sales a year and MG said it will deliver a stable stream of profits to the company over the life of the contract.
MG said it will invest $145 million in upgrading facilities at the Cobram plant in Victoria. The investment will create a world-class cut and wrap consumer cheese processing facility.
MG managing director, Gary Helou, said: "Investment at our Cobram facility in Northern Victoria will deliver world-leading technology for processing and packaging a range of consumer and food service cheese products including block, slices, snacking and shred.
“Ultimately these investments are being made to support our drive to deliver sustainably higher and more stable farmgate prices and returns over the long-term,” Gary said
