Saputo Dairy announces $20m investment in Smithton plant

The move is set to place Tasmania at the heart of Saputo Dairy Australia's manufacturing operations for the future, with substantial upgrades to the Smithton plant said to drive employment opportunities.

Saputo Dairy CEO Lino A. Saputo made the announcement during his visit to the plant on Thursday, February 16, saying the region was a "natural choice to invest in".

"The north-west has an incredible quality of milk," Mr Saputo said.

"As we are thinking about investing in the future, we need to work to our strengths, and the quality of the product and the talent of the team here at the Smithton plant made the choice an easy one."

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Mr Saputo said the upgrade would create high-value products for domestic and premium export markets while increasing production capacity and generating employment in the region.

"The investment will bring jobs to this area, jobs that are permanent jobs, contract, and casual jobs," he said.

"By investing in the infrastructure and value-adding to our overall product, we will create value for the plant, for our stakeholders, and for our employees and customers."

Amid dairy factory closures in Victoria and South Australia, and with Australia's milk production declining by 3.4 per cent over the 2021/22 season, Mr Saputo says those in the dairy industry must adapt.

"With the declines occurring year on year, we can't expect to have the same footprint and remain efficient," he said.

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