Home > WA’s $650m dairy project could double the state’s industry output

WA’s $650m dairy project could double the state’s industry output

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The WA government has created a blueprint for the purchase of dairy farms and building infrastructure which could see the size of the state’s dairy industry double.

The project which is reported to total $650m, is being created to take advantage of increasing demand for high quality dairy products in Asian markets, particularly China. 

The blueprint was prepared by the Department of Agriculture and Food WA, and has been distributed to selected Australian companies and some of China’s largest dairy stakeholders as reported by The West.

Chinese Billionaire, Zong Quinghou visited WA last year as he was considering investing $200 m in a milk processing plant for his Wahaha group. 

Quinghou is said to be considering investment in the new project, however he questioned the ability of the State to produce milk at the scale which he requires.

Foreign investment by the Chinese businessman is a welcomed prospect for WA’s struggling dairy industry which saw one of the State’s largest milk producers placed into receivership recently.

The $1 milk pricing policy of supermarket giants Coles and Woolworths has also placed immense strain of the industry.  

Image credit: Flickr

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