Australian family dairy processor has strong future
Media Release
Longwarry Food Park, recently named BRW’s best mid-market business in regional Australia, was established in 2001 by its managing director Mr Rakesh Aggarwal to produce and export milk powder.
Since its inception, the company has proven its adaptability and resilience through various challenges, the most devastating being a factory fire in February 2012 when the plant was closed for seven weeks. After losing one third of supply and being left with a damage bill of $5 million, the company has fully recovered and is again experiencing 30 per cent annual growth.
Part of the company’s strength is the diversification of their quality award winning product range that now includes the manufacture of full cream milk powder, fresh milk, UHT milk and cream cheese.
The company’s production, previously 95 per cent export, is now 75 per cent export to 30 countries and 25 per cent domestic business.
To meet the increasing production, the company are looking for 20 million more litres of milk this year and 30 million more litres for next year. To achieve this they are offering farmers a competitive milk price they claim is the best in the industry. They have a more leniently priced quality perimeter and a single pricing system that is simple to understand.
General Manager of the company Saurabh Aggarwal who joined the business in 2008 with a background in investment banking previously worked in the commodity business, which he said was predominately iron ore and the coal space in mergers and acquisitions.
He said dairy is one of the key commodities exported out of Australia.“It’s one that doesn’t get the same publicity despite its importance to the broader economy and in terms of the number of jobs it creates, which would outweigh iron ore and coal. I think the dairy business has a more sustainable competitive advantage against the rest of the world than some of our hard commodities so I think the future of the dairy industry is very exciting and strong as a result of that.
“Australia has one of the best reputations in the world for its dairy products and Longwarry Food Park has a strong space in that.”
See also:
Longwarry Food Park Media Release 1
Longwarry Food Park Media Release 2
