Australian dairy group Bega Cheese has reportedly reached a ten-year supply agreement with Kraft Foods.

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Bega Cheese has secured a contract to provide cheese cutting, packaging and processing expertise and capacity for Kraft’s Australian and New Zealand business.


According to a report by ABC, Bega will purchase a factory at Strathmerton, in northern Victoria, where 150 jobs will be created as the company invests in increased capacity.


Chairman Barry Irvin indicated the acquisition will bring the company’s turnover to nearly A$1bn (US$686.7m), ABC reported. 


“This opportunity is certainly good timing as we can down ramp up our business development,” Irvin reportedly commented.

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Neither Kraft nor Bega were immediately available for comment.

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