Japanese conglomerate Mitsubishi has invested in Australian dairy ingredients supplier Tasmanian Dairy Products.

The company has acquired 24% of Tasmanian Dairy Products from the firm’s largest shareholder Murray Goulburn, the Australian dairy processor.

Tasmanian Dairy Products, which was set up last year, has yet to start production but will supply customers in Asia.

Demand for dairy products in Asia is booming and processors across the world are targeting the region. Dairy brand owners and ingredient suppliers in Australia and New Zealand are paying particular attention to markets like China and would hope to have an advantage on their international competitors due to their proximity to the region.

Tasmanian Dairy Products plans to start production in September, with Mitsubishi as one of its customers. Murray Goulrburn will remain the majority shareholder in the business.