Australian dairy processor Murray Goulburn is to boost production of UHT milk in a bid to meet demand in Asia.

Murray Goulburn is spending A$19.1m (US$19.9m) at its facility in Leongatha in Victoria. The expansion is part of plans to invest A$200m across its facilities but MD Gary Helou said the co-op had to boost UHT production immediately.

“The demand for Australian dairy products is growing rapidly. To meet the demand for UHT milk, we realised we had to make the upgrade at Leongatha now,” Helou said. “The Leongatha upgrade will help MG meet immediate demand for UHT milk from world markets, particularly Asia.”

Two production lines will be added, increasing capacity by 70m litres a year. The work is expected to be completed by December.

Murray Goulburn said it will reveal the full details of its A$200m expansion plans later this year.

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