Coles has snapped up two milk processing facilities from Saputo Dairy Australia for $105 million, which it says will improve the security of milk supply and consolidate the retailer’s milk production.

Each facility has the capacity to process about 225 million litres a year, and they are predominantly used today to process Coles Own Brand 2L and 3L milk. The processing facilities are located in Laverton North, Victoria, and Erskine Park, NSW close to Coles’ distribution centres.