AUSTRALIA / INDONESIA – Murray Goulburn Co-operative Co Limited (MG) has secured a long-term nutritionals supply agreement with Kalbe Nutritionals, one of the largest consumer health and infant nutrition company in Indonesia. This deal, along with another supply agreement it recently sealed with Mead Johnson Nutrition (MJN), will now enable MG to build a new state-of-the-art nutritional powders plant in Australia; MJN will co-locate a nutritional packaging plant on the site, and the parties will sell the finished products within Asia Pacific.
MG is an agricultural cooperative formed in 1950 from 14 dairy farms that has grown to become the largest processor of milk in Australia and the nation’s largest exporter of processed food
The Kalbe agreement builds on the exiting supply partnership which has seen MG supply dairy powders for use in Kalbe’s range of nutritional products including infant and children nutrition brands. Under the new long-term supply agreement, MG has committed to supply and Kalbe to purchase “significant” minimum annual volumes over time.
Gary Helou, MG’s managing director, said, the agreement with Kalbe “paves the way for further collaboration between our two companies, particularly as MG looks to grow its high quality dairy food products in Asian markets, including Indonesia.”
Deal with Mead Johnson Nutrition (MJN)
Meanwhile, MG has signed a framework agreement which sets out key terms of a major long-term offtake arrangement, under which MJN will commit to acquire certain volumes of nutritional powders from MG on an annual basis. The companies will now proceed to formalise the detailed terms of the supply agreement.
The collaboration will enable the two companies to capitalise on their complementary strengths – MG’ dairy foods and nutritional powders expertise and MJN’s scientific knowledge in infant and young child nutrition.
Kasper Jakobsen, MJN’s CEO, said, “Mead Johnson is pleased to be working with MG and to be adding additional flexibility and high-quality capacity to our global supply chain. We look forward to developing the relationship further in the future for the benefit of consumers across the Asia Pacific region.”
MG’s investment in additional production capacity
With these two deals, MG says it will now be able to underwrite its plans for a new US$198-228 million (A$260-300 million) nutritional powders manufacturing facility at Koroit in western Victoria, Australia.
It is understood that MJN will co-locate a nutritional packaging plant on the site. Once completed, the parties envisage the facilities supplying finished products for sale within Asia Pacific, including China.
Our full news report is available in Packaging Business Insight Asia
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