AUSSIE Farmers Direct and Organic Dairy Farmers of Australia will produce traditional and organic butter in western Victoria.
The announcement, confirmed industry speculation about the deal which involves a joint investment of $1.2 million.The new butter processing facility will be part of an upgrade to the existing Aussie Farmers Dairy site, located at Camperdown.
AFD will convert its own cream into its own branded butter packs, while the other production stream will use organic milk supplied by 22 local organic dairy farmers.
This will be sold under the Organic Dairy Farmers of Australia banner and its second brand True Organic.
Butter production at Aussie Farmers Dairy is expected to start by end June 2013.
In its first full year of production the facility is expected to produce between one million to two million packs of butter with the capacity to produce double this quantity as required.
