A Shepparton-based dairy UHT processor is moving into the Vietnamese market on the second anniversary of its development.
The Pactum Dairy Group is about to install a second packaging line at its Old Dookie Rd factory.
Pactum is a joint venture between milk supply company ACM and health food company Freedom Foods.
A large percentage of ACM’s 250 million litres of milk comes from northern Victoria and about 100 million litres of that goes through the Pactum factory.
ACM managing director Michael Auld was in Vietnam in May to launch the new 1litre and 200Ml product.
The company has specifically targeted high-value Asian markets and has ignored the large volume bulk powder production which has been difficult to sell this year on international markets and which has impacted on the big commodity producers, Murray Goulburn and Fonterra.
Pactum is paying its suppliers about $5.90/kg ($6.70/kg last year).
Mr Auld estimated their waiting list for suppliers at about 30.
‘‘If we can nail some of those it will bring more volume through the door,’’ he said.
The Vietnam launch, in Ho Chi Minh City, has a heavy emphasis on the clean and green provenance of the milk, which has been a major marketing theme for the company.
‘‘We think we have an excellent product that local farmers produce, processed in a state-of-the-art facility,’’ Mr Auld said.
‘‘This gives us great opportunity to partner up with markets in Asia to be able to export a branded strategy with that story.’’
The company, which now employs about 65 people, has secured a contract with a major Australian retailer.
Work will start soon on a new production line to add to the current four in the Old Dookie Rd factory.