Australia's largest dairy company launches fresh milk brand for consumers in China

Half a year after it bought Van Diemen's Land (VDL) company, Australia's largest and oldest dairy operation in Tasmania state, Chinese group Moon Lake Investments has rolled out a new brand of fresh milk targeted at consumers in China.

The milk exports are set to hit Chinese shelves from the first quarter of next year, via a new air freight link between Hobart and Ningbo in east China's Zhejiang province, Moon Lake's Managing Director Sean Shwe told a media briefing on the launch of the brand in Tasmania's capital city on Wednesday.

"This is an exciting venture for our company ... and potentially for all Tasmanian producers of fresh, perishable produce such as seafood, fruit and vegetables," Shwe said.

Tasmania's Premier Will Hodgman also told reporters at the launch that the development demonstrated how "Tasmania is now a destination that investors want to be part of."

"We have some of the best, finest produce in the world that massive markets like China want to get more of and we're seizing these opportunities," Hodgman said.

"We'll see more people employed here, more business opportunities, for Tasmanians and the ongoing growth in our economy."

The launch comes eight months after the Australian government approved Moon Lake's acquisition of VDL, which has been owned by foreigners since it started operations in 1825, amid competing offers for the dairy group from two local companies.

In February, Australia's Treasurer Scott Morrison said he decided to approve the 280-million-Australian dollar sale after "carefully" considering the national interest, following advice from the Foreign Investment Review Board, which advises the Australian government on foreign investment policy and its administration.

The approval is conditional on Moon Lake's compliance with Australian taxation law and other conditions which cover the sale of food and other products overseas, Morrison said.

VDL, now trading as VDL Farms, includes 25 dairy farms and the state's historic Woolnorth Station site. It has milked more than 18,000 cows over more than 8,000 hectares of dairy farm this year, producing a total of 7.86 million kg of milk solids and 99.8 liters of milk, the company said.

About 10 million liters of milk, or 10 percent of the company's annual milk production, will be processed under its new "VAN Milk" brand for high-end consumers in China via contract by Hobart's Lion Dairy, which is currently Tasmania's only licensed export pasteurized milk processor with the scale Moon Lake requires.

Two Australian freight companies are also being used - Tasmania's SRT Logistics, which provides cold freight and storage of the milk within the state; and national firm Link Logistics, which handles quality control of the dairy supplies during their transportation to China.

The Chinese company has said that it would maintain VDL's workforce of more than 100 people, with plans to increase headcount as well as improve productivity and quality control, among other measures.

"A great majority of the people that were with VDL are currently employed by Moon Lake and Moon Lake has appointed a board member who has strong connections with Tasmania. While we think globally, we are acting very local," Shwe said.

"It's more than a new brand with a new logo. It's not just another Tasmanian brand with a different look and feel. We believe it's much more than that ... it's a game changer for Tasmania, at least in the context of Tasmanian dairy exports.

"Of course, our ultimate goal is to be able to build a trading bridge between Tasmania and China."

Premier Hodgman said the launch also reflects the government's determination to work closely with investors who come to Tasmania.

"It's part of our ongoing effort in key areas like China to work closely with partners and those who invest in Tasmania and expand their operations. We're very determined as a government to show the rest of the world that we are open for business." Endit