Dutch Mill

Premium milk exported from lush North West Tasmania

International consumers of Tasmanian-made Dutch Mill milk can’t get enough. They now have an acquired taste for premium long-life milk from Circular Head in North West Tasmania; the prime dairy production area of Australia.

Based in far North West Tasmania, about 15km from Smithton, Dutch Mill, a Thai milk processing company, acquired the land and assets of Edith Creek dairy processing facility from Murray Goulburn, with a view to deliver a premium range of UHT (ultra-high temperature processed) milk products to complement their existing products.

“When Murray Goulburn closed, it put about 120 people out of a job,” explains Dutch Mill Tasmanian Dairies Director Paul Arnold. “We were able to retain key staff and have been growing ever since, based on the contracts we have for Dutch Mill and for other contract packing that we do for companies across Australia.”

Dutch Mill received a support package of $2.25 million from the Tasmanian Government to assist with workforce development and upgrading the factory to a world-class facility. The funds supported an electrical infrastructure upgrade, electrical network augmentation, chilled water capacity upgrade as well as a new water line from the Duck River Irrigation Scheme.

“The Tasmanian Government have been aware of Dutch Mill ever since they invested here and the Office of the Coordinator-General (OCG) has been aware of our aspirations,” explains Arnold. “We had an ongoing dialogue with OCG and they have been part of the story from the beginning. The request for infrastructure improvement was made and we are grateful to have received this support.”

Dutch Mill also invested in Tasmanian dairy farms; and currently have five active farms. Milk from Circular Head farms is sourced to make premium milk products including UHT milk, custard, cream and other milk-based products. The products are then distributed Australia-wide and exported to Vietnam, Cambodia, Myanmar and Laos.

“Dutch Mill are well known globally in the dairy industry with several large UHT plants in Thailand. They mainly use milk powder for production overseas and wanted a premium offering out of Tasmania to complement what they do. Consumers now can taste the Tasmanian difference and that’s what it’s all about – our clean, green image and provenance. The market loves it,” adds Arnold.

Like the majority of businesses, Covid-19 has caused challenges for Dutch Mill with supply chains stretched across the last two years. The company has had to procure many ingredients earlier than desired due to freight logistics. This has caused pressure in increase holdings of inventory and freight costs worldwide have risen. However, Tasmania’s plant has remained buoyant and is still attracting a strong market due to the demand of its high-quality milk.

“We’ve been fortunate that our products are so successful in the marketplace. For instance, Vietnam consumers love our relatively milk-based products. It’s popularity stems from the premium flavour and consumers can literally now taste the difference and love Circular Head milk; which indeed is the prime dairy production area of Australia,” adds Arnold.

The company also packs products for a range of Australian customers with products made from milk and cream including high energy drinks, custard and more. With a growing number of consumers suffering allergies, the demand for the likes of oat milk and almond milk has skyrocketed.

Dutch Mill also invested in new packaging lines since taking ownership to improve production capacity. Not only do they package their own products but operate as a support factory for many mainland companies who do not have sufficient capacity at their own plants.

“It’s so great for the local area to have a value-adding factory in the Circular Head region,” says Arnold, “just like Cape Grim beef, we’re known for our exceptional quality. Dutch Mill saw the value of investing in Tasmania for its pristine qualities and since the factory’s reopening have gone from strength to strength.”

Find out more at Dutch Mill.

Words: Alice Hansen