The decision by national milk processor Lion Dairy and Drinks (LDD) to invest $40 million over the next three years towards upgrades at the Bentley plant in Perth has been applauded by WAFarmers Dairy Council.President Phil Depiazzi said it represented a large investment in processing in WA, which instilled confidence and demonstrated commitment to the local dairy industry.
“It will give farmers the confidence to invest in their businesses, knowing that LDD is committed to processing in WA for the foreseeable future,” he said.
“The overhaul will see the processor expand manufacturing capacity, improve processing efficiency and streamline its distribution process. It also ensures that LDD remains a sustainable and viable processor in the WA dairy market.”
While Mr Depiazzi admitted that the job losses of 30 people was regrettable, he explained that it demonstrated how tight processor margins were within the state’s dairy industry.
“These job losses and tight processor margins can be directly attributed to the sale of $1.00 per litre milk,” he said.
“A product that is not able to be sold at a sustainable price, in this case milk, puts pressure on the whole supply chain, so consumers can play a role in achieving a sustainable price by purchasing local branded milk.”
-WA Farmers