By Jane Ross
A MULTI million dollar dried milk processing plant at Burra Foods will boost the company’s place in the global market.
It’s being built with the help of a $2.1 million electricity upgrade paid for by the State Government.
Regional and Rural Development Minister Jacinta Allan visited Burra Foods on Wednesday to announce the power funding under the Regional Electrical Access Program (REAP).
She said Burra Foods’ management estimated that blackouts cost the factory an average $1million a year in lost production.
Company CEO Grant Crothers told The Star the new opportunities will lift its exports from 70 per cent of product to 85 or 90 per cent.
The new plant should be finished by the end of June.
It won’t be producing just any old milk powder.
“We’re going for a higher end specification product,” said Mr Crothers. “Japan is a keen market.”
That’s been the story of Burra Foods’ 20 year history; finding a niche in the market and fitting in.
And the milk powder won’t be the end of the story.
“We will be slowly marching to increase value,” said Mr Crothers.
In her second visit to Burra Foods in 12 months, Ms Allan said the electricity boost would help secure the factory’s 80 full time jobs and lift the demand for milk from suppliers.
One, Colin Dowel of Korumburra, joined Ms Allan and Mr Crothers on a tour to the back of the factory where the new plant is under construction.
“I’ve been supplying Burra Foods for 10 years. They’ve been good to us.”
Ms Allan’s earlier trip to Burra Foods was to congratulate management on being the first major business in South Gippsland to connect to natural gas.
“That’s saving $500,000 in running costs.”
The minister said Burra Foods processes 130 million litres of milk a year.
She described the Burra Foods story as “a great one”.
“It’s terrific to be back here. I’m very pleased we’ve been able to help out …. with the expansion.”
The latter is “a great vote of confidence in suppliers and in the region”.
“It’s good for dairy farmers and the dairy industry. It’s a challenging industry but one so important to the Gippsland region and to
Victoria.”
When Burra Foods took over the old Korumburra Butter Factory in 1990, the infrastructure was what Mr Crothers described as “Third World-ish”.
“There was an empty shell of a factory full of asbestos, a very ordinary power supply, poor mobile phone reception and no broadband.”
He described the milk powder plant as “a Goliath type thing” for Burra Foods.
