Thursday, 13 August 2020 Sydney

Mead Johnson Nutrition partners with Australian dairy giant Murray Goulburn::

Leading global pediatric nutrition company, Mead Johnson Nutrition, has entered into a framework agreement to establish a strategic dairy supply alliance with Murray Goulburn.

The alliance includes a long-term offtake agreement that underpins investment in a new nutritional powders facility (A$260–A$300 million) and packaging plant in Koroit, western Victoria. This represents one of the largest investments in nutritional powder capability and capacity made in Australia for a decade.

Subject to obtaining the necessary approvals, the first phase of the plant is expected to be operational in early 2019. Once completed, both parties envisage the facilities supplying finished products for sale within the Asia-Pacific region, including China.

The new facilities will be operational in time to leverage preferential access to Chinese markets under the China-Australia Free Trade Agreement (ChAFTA). China is Australia’s second largest market for dairy exports, worth A$295 million in 2014–15. Under ChAFTA, the 15 per cent tariff on infant formula will be eliminated by 1 January 2019, while the 10 per cent tariff on milk powders will be eliminated by 1 January 2026.

‘Mead Johnson is pleased to be working with Murray Goulburn and to be adding additional flexibility and high-quality capacity to our global supply chain,’ says Kasper Jakobsen, CEO, Mead Johnson Nutrition.

‘We look forward to developing the relationship further in the future for the benefit of consumers across the Asia-Pacific region.’

Mead Johnson, a global leader in paediatric nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 markets worldwide. Headquartered in the US state of Illinois, Mead Johnson’s name has been associated with science-based paediatric nutrition products for over 110 years. The company’s ‘Enfa’ family of brands, including Enfamil® infant formula, is the world’s leading brand franchise in paediatric nutrition.