The signing of the Australia China Free Trade Agreement (FTA) was an important moment for Murray Goulburn. It was intending to maximise the opportunities the agreement put in front of it. It has.
Murray Goulburn’s exports accounted for more than 51% of its revenue in the 2012-3 financial year, with the co-operative exporting $1.5 billion - including more than $200 million to China and Hong Kong - in the form of infant nutrition, milk powder, cheese and drinking milk.
The co-operative had completed a $19.1 million upgrade to its Leongatha plant, increasing the site’s UHT manufacturing output by 70 million litres per year, the upgrade being part of Murray Goulburn’s forward thinking $200 million investment in leading-edge dairy food manufacturing facilities for UHT milk, butter/spreads and cheese.
With the FTA in place, Murray Goulburn relaunched and expanded its Devondale UHT range in China to capture the full value of increasing demand by Asian consumers for safe, reliable dairy foods.
“We have our sights set firmly on high value growth markets, like China, where the demand for dairy foods is very strong well into the foreseeable future,” Murray Goulburn managing director, Gary Helou, stated.
He emphasised, too that the FTA will deliver higher farmgate returns to its 2,500 dairy farmer supplier/shareholders.
“Our two strategic pillars are operational excellence and innovation. MG is already investing in its manufacturing footprint to provide world class dairy foods to China and south-east Asian consumers. Our innovative new packaging enhances the product’s shelf appeal and is tailored to the local Chinese market based on extensive local customer insights.”
China was the world’s largest dairy import market in 2013, importing 2.2 million tonnes, an increase of over 40% on the previous year.
The Devondale branded milk is being produced at Murray Goulburn’s Leongatha UHT plant
The milk’s country of origin is clearly marked on the packaging because the message, ‘100% pure Australian milk’, appeals strongly to Chinese consumers. Australia is trusted throughout Asia for the safety and quality of its dairy foods.
“The Devondale range is known internationally for its exceptional quality and safety, which we are clearly communicating on the pack, along with our proud Australian dairy-farmer origins, which is a key selling feature in international markets like China. The recent FTA will improve the competitive positioning of Australian dairy foods into China but dairy farmers must have ownership of the supply chain and brands in order to capture maximum benefit – otherwise value will be lost to others in the chain.”
The packaging is bilingual and metallic, with pack designs based on Chinese consumer research and feedback. The range comes in 200ml and one litre as well as associated family gift packs. The metallic UHT packs have a premium look and feel and feature a distinctive gold Devondale logo, to reinforcing Devondale’s premium positioning in the market.
