Bubs Australia and Bega Cheese are claiming an Australian dairy industry first as they team up to produce goat’s milk infant formula.

New South Wales-based Bubs, which manufactures infant formula and baby food products, said it has entered a “long-term strategic supply partnership” with Tatura Milk Industries, a subsidiary of Bega, according to a filing today (27 February) with the Australian Securities Exchange. The agreement contains an option to extend the deal for a further thee years.  

Bubs said Tatura is one of Australia’s “largest and most-reputable infant-formula manufacturers”.

Under the deal, Tatura will carry out the “nutritional wet blending” of raw milk with other ingredients and conduct the spray drying process at its facility based in the town of the same name in Victoria. The goat’s milk formula will then be canned at Bubs’ Australian Deloraine Dairy, its local manufacturing partner. Production is due to start in March.

Australian Deloraine Dairy has a Certification and Accreditation Administration of the People’s Republic of China, a license which allows it to export into the Asian country.

Kristy Carr, Bubs founder and chief executive, said: “Being able to produce our goat infant-milk formula in a single step directly from farm gate is an ‘Australian first’ for goat dairy, that is only made possible because we have exclusive ownership of fresh goat milk from the largest milking goat herds in Australia. 

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Paul van Heerwaarden, the CEO at Bega, added: “We are excited to be partnering with Bubs Australia in this new venture. We have been working closely with Bubs to develop an infant formula of the highest integrity and quality aimed at satisfying the increasing demand for both goat-milk formula and a product that can be genuinely positioned as Australian.”