Bega Cheese to invest $24.1m in new Australia lactoferrin plant

Australian dairy company Bega Cheese has announced plans to build a new lactoferrin plant at its Koroit facility in Western Victoria.

The firm has secured a long-term lactoferrin supply agreement, which will support an investment of approximately AUD 34 million ($24.1 million) to establish the unit.

Lactoferrin is a naturally occurring iron-binding protein found in milk that is known for its anti-microbial, anti-inflammatory and immunological properties.

Bega said that as a high-value and functional ingredient, lactoferrin is used globally in a range of consumer health and nutritional food products, including infant formula. The firm started manufacturing lactoferrin at its Tatura, Victoria, site in 2002.

Paul van Heerwaarden, Bega Cheese CEO, said: “The new lactoferrin plant will enable us to produce more than 35 tonnes of lactoferrin each year to be used in products such as infant formula and pharmaceuticals.

“This investment at Koroit will position Bega as one of the largest manufacturers of lactoferrin globally and is a major step forward in the growth of our bio-nutrients business.”

Bega bought the Koroit facility last year from Saputo for approximately AUD 250 million ($184 million). At the time, Bega said the purchase would significantly strengthen its milk processing operations.

As well as its cheese portfolio, Bega makes a range of dressings and dips under its Zoosh brand. This time last year, the firm secured a deal to buy the Vegemite spreads brand from Mondelēz International’s Australia and New Zealand business.