UDP developing alternative for Vaughan Street site
By Nadia Surace
MORE than $200,000 has been spent on research and investigation into what would be the most viable product for processing at Shepparton’s former Dairy Farmers milk processing plant.
Taken over by United Dairy Power (UDP) in 2009, the Vaughan Street site was to become a cheese factory at the cost of around $40 million and was expected to create around 100 local jobs.
It is understood that product disposal restrictions and regulations resulting from the Federal Government’s Murray Darling Basin Plan, forced UDP to scrap the plan and look to alternate options.
UDP would not confirm what product would be manufactured at the site, but a recent supplier meeting revealed that it would be up and running within 12 months.
An announcement regarding the product type is expected within six months.
UDP are now looking for additional suppliers to meet increasing supply demands.
As a result, UDP are offering attractive long-term contracts to suppliers with minimum three-year pricing, no downside, and possible increases in milk pricing depending on competition.
UDP are also rumoured to have acquired National Foods food processing plants at Murray Bridge and Jervois in South Australia set to increase demand even further.