BEGA is working on plans to expand its site at Tatura in northern Victoria.
In a statement to the Australian Stock Exchange, the Bega Cheese Group said it was working with state government departments and the Greater Shepparton City Council to buy two blocks of government land and obtain planning approval for the expansion of manufacturing at Tatura.
"The purchase of the land ensures that the Bega Cheese Group's manufacturing capacities and capability at Tatura will not be limited by the constraints of its existing site and will be able to expand as demand, particularly from Aisa to the Middle East continues to grow."
Bega also announced a $2 million investment in cheddar cheese manufacturing capacity to meet growing demand from Coles and $8 million on further value adding of milk proteins.
Bega will release its half year report on February 21.