US cheese importer builds new $100m dairy plant in Melbourne

Pure Dairy, which supplies US cheese to the Australian food services sector, is building a new dairy plant in Melbourne.

An artist’s impression of Pure Dairy's $100m Dandenong South plant, which is due to be completed in early 2024.

An Australian importer of US cheese is building what it calls a $100 million “state-of-the-art dairy conversion facility” in Melbourne.

It remains unclear whether Dandenong-based Pure Dairy will be processing any Australian milk at the site or simply undertaking secondary processing of US dairy imports, as the company has not responded to requests for comment.

But on its website Pure Dairy chief executive officer Robert Giles states the new plant was being constructed as a “state-of-the-art dairy conversion facility in Melbourne”, scheduled to open in early 2024.

“This will provide our buyers and suppliers with yet more solutions, bring to life our new Universal brand and open the doors to a wealth of opportunities in the retail market,” Mr Giles said.

Pure Dairy owner and executive chairman Adrian Josephson recently wrote to Australian dairy organisations stating the “purpose-built development is the largest privately funded investment into Australian dairy for 40 years, creating a diverse range of 450 jobs, boosting exports and contributing to economic growth”.

No detail is given on how the facility will boost exports, given Pure Dairy’s current product range is dominated by US imports, ranging from its Hi-melt burger cheese and frozen Wisconsin cheese curds to its Universal-branded American cheddar, mozzarella, gouda and mexi-shred cheeses and sauces.

There is also no evidence of milk silos being built on the site, with images showing the frame of a 16,000 square metre building is under construction on the 4ha site at the corner of the corner of Abbotts Road and National Drive, Dandenong South.

Pure Dairy’s new $100m-plus plant under construction in Dandenong South.

The Australian food services sector is already awash with US cheese, which ABS and Dairy Australia data shows is being landed on Melbourne, Sydney and Brisbane wharves in 2022-23 at an average $7.29 a kilogram, even undercutting New Zealand cheese at $7.62/kg.

Imports of US cheese by value since July 2021 (in Australian dollars)

Customs data shows the value of all US dairy imports soared from $300m to $420m in the 12 months to June 30 this year as the world’s largest economy offloaded excess milk.

The question for Australian dairy processors and, in the longer term, farmers, is will Pure Dairy be importing even more US cheese and other dairy products to shred, pack and wrap in its new facility.

Pure Dairy already promotes its ability to cut the costs of key dairy ingredients for Australian food services businesses - from fast-food outlets to restaurants.

The company’s Pure Dairy national account manager Amanda Gibson wrote on the company’s website that “Australia’s decline in milk production year on year is impacting dairy production and prices” and urged potential customers to “discover Pure Dairy’s affordable, tasty alternative to expensive cheese”.

Pure Dairy is headquartered at an office in Dandenong with satellite offices in the US, Mexico and Singapore.