Pure Dairy inaugurates its US$65.36M processing facility

AUSTRALIA – Australian dairy company Pure Dairy has officially opened its new USD 65.36 million ($100 million) processing site in Dandenong South, Victoria, marking a transformative moment for the country’s dairy industry.

Spanning 13,000 square meters on a 10-acre plot, the state-of-the-art facility is one of the largest privately funded investments in Australian dairy manufacturing in four decades.

The site is equipped with cutting-edge technology, including automated processing systems and advanced manufacturing equipment introduced to Australia for the first time.

Designed with sustainability and lean manufacturing principles in mind, the facility aims to meet the highest global standards for environmental and operational efficiency.

The facility is expected to create approximately 450 new jobs across manufacturing, research and development, logistics, and corporate functions.

Pure Dairy’s Executive Chairman, Adrian Josephson, described the launch as a milestone in dairy innovation, emphasizing the company’s decade-long collaboration with clients to refine its operations.

With this new facility, Pure Dairy will significantly expand its capacity to serve clients in over 70 countries, reinforcing Australia’s role as a key player in the global dairy market.

The plant will focus on cheese processing and other dairy innovations, supporting the company’s mission to deliver high-quality, tailored dairy solutions worldwide.

Despite the substantial domestic investment, the new plant has drawn swift criticism from key industry lobby groups, including the presidents of Australian Dairy Farmers and United Dairyfarmers of Victoria.

Their main concern is the facility’s potential role in processing imported cheese, which could then be labeled “Made in Australia from imported ingredients.”

These farm leaders fear that the capacity to finalize manufacturing of cheaper New Zealand or American cheese indirectly harms local dairy producer profitability and contributes to recent factory closures, such as Bega’s Strathmerton facility.

Pure Dairy’s Executive Chairman, Adrian Josephson, countered the criticism by emphasizing the company’s current reliance on local supply.

He stated that approximately 90% of the dairy produce currently processed at the Dandenong site is sourced from Australia.

However, Josephson was quick to clarify that this domestic/import ratio is inherently fluid, being subject to global dairy economics and seasonal factors, citing price pressure from competitors selling cheaper cheese on the Global Dairy Trade (GDT).

Addressing the specific labeling controversy, Josephson affirmed that Australia already possesses strict food labelling laws designed to ensure consumer awareness regarding the country-of-origin for all dairy products.

Furthermore, he noted that the vast majority of the new site’s output—roughly 95%—is directed to the hospitality sector (fast food and restaurants), reflecting Pure Dairy’s historical focus on food service rather than retail.

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