Freedom Foods Group and Mountain Milk Co-operative have announced they will work together to form a new supply arrangement for milk from north-east Victoria, benefiting the group’s Shepparton plant.
Victoria’s newest dairy co-op, which was formed earlier this year, will initially provide 20million litres of milk per annum to Freedom Foods’ plant in Shepparton.
‘‘This is an inspiring partnership with huge potential and will provide Freedom Foods with premium milk from one of Australia’s most efficient and historic dairy regions,’’ Freedom Foods managing director and chief executive officer Rory Macleod said.
‘‘Our agreement ensures Mountain Milk’s founding farmers achieve a fair and competitive farm gate price, strengthening their ability to continue to develop and invest in their businesses.’’
Mountain Milk’s chairman Stuart Crosthwaite said the partnership was ‘‘a great opportunity for the co-op’’.
‘‘We are aligned with the Freedom Foods vision to ‘make foods better’ and believe our partnership is a great opportunity for Mountain Milk to demonstrate how milk from this beautiful region can contribute to the highest quality food outcomes for consumers,’’ Mr Crosthwaite said.
Mr Macleod said the Kiewa Valley was recognised as a source of premium milk and milk products.
‘‘Mountain Milk is committed to bringing the best Australian dairy has to offer to consumers,’’ Mr Macleod said.
Milk supplied to Freedom Foods under the partnership agreement could increase to 30million litres within six months, and further as production rises.
The agreement is expected to take effect in mid-2018.