The Premier, Lara Giddings, today welcomed the announcement of Cole's major new contract with Tamar Valley Dairy at its new $20 million processing facility at Invermay.

 

The new production facility, due to be completed in July, is five times larger than the existing factory and will elevate Tamar Valley Dairy to become one of the largest yoghurt manufacturers in the country.

 

Ms Giddings said the new five-year contract with Coles will see Tamar Valley Dairy distribute its private label yoghurt range to the supermarket giant.

 

"This Coles contract will help to grow the retail business by 40 per cent, securing manufacturing at the site and growing more jobs.

 

"It also supports a newly established dairy at Bridport to the State's North East which will supply 4 million litres of fresh milk to Tamar Valley Diary," Ms Giddings said.

 

"Job creation is an important part of this investment, and Tamar Valley Dairy expects to employ around 40 additional people as a direct result of this partnership with Coles.

 

"Indirectly, the company expects the contract will provide employment for over 100 people, for example the increase in production will have flow-on effects in supporting our interstate refrigerated transport industry as well as a local packaging manufacturer.

 

"This investment highlights one of the key elements for the State Government's Economic Development Plan, which seeks to maximise economic growth and jobs through the growth of sustainable businesses in Tasmania.

 

"This is a massive vote of confidence from Coles in the strength of the Tasmanian brand and the quality of our products.  It is yet another sign that despite current challenges, Tasmania is well and truly open for business."

 

The Minister for Primary Industries, Bryan Green, said it was another example of the massive investment occurring in the Tasmanian dairy industry, particularly in the North and North West.

 

"This dairy boom has largely been made possible by our massive investment in irrigation infrastructure," Mr Green said.

 

"This combined State and Federal investment will sustain growth and jobs in the agricultural sector for decades to come, particularly in the dairy sector, where we are already seeing millions of dollars worth of investment."

 

Mr Green said other major dairy projects currently underway included the construction of a new milk processing plant at Smithton, the $140 million redevelopment of National Foods' cheese factory in Burnie and a major dairy expansion planned by the Van Diemen's Land Company.

 

Ms Giddings said the Coles contract and associated dairy expansion in Bridport was just one example of the exciting investment occurring in the North East region.

 

"Just yesterday I was pleased to see the start of the Commonwealth's $18.7 million redevelopment of the Defence Science & Technology Organisation's nutrition research facility at Scottsdale which will provide between 20 and 30 jobs in the region during construction.

 

"And recently, the Deputy Premier and I visited Musselroe to inspect progress on the construction of the $400 million wind farm, which has also created new jobs in the North East, including for some workers previously displaced from the forest industry.

 

"It is important to also support the development of micro and small businesses for job creation which is why we are rolling-out the Ernesto Sirolli model of regional economic development in Scottsdale and George Town."