WATERHOUSE, in Tasmania's North-East, is set to boost the region's milk production by 3 million litres a year.
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The milk will go to processor Fonterra.
Agrilac yesterday launched the first of what it hopes will be three dairy conversions - a 700-cow dairy on Old Waterhouse Road.
Agrilac director Nic van den Bosch said that the conversion was based on a high- performance sustainable dairy production model and would be managed by Bryan and Bethan Moore, who resettled from New Zealand for the role.
He thanked the farmers who had a role in the development of the new facility through stock agistment, cropping, hay, silage work, gravel supplies and the like, as well as the government agencies who supported the conversion.
Fellow director Roger Bignall said that the conversion had been a huge challenge.
"Half of the area now under irrigation was bushland three years ago - it has been a tremendous effort from all involved," he said.
"I think the Waterhouse country has a lot to offer with the addition of water - having control with water, the mild coastal environment lends itself to grass and Waterhouse does grow grass wonderfully.
"I can't wait until things start rolling on and we get started."
Bass Liberal MHA Peter Gutwein launched the dairy on behalf of the government.
"I don't think I've ever opened anything for the Premier before, and probably never will again," he said of his last-minute inclusion for Bass Labor MHA Brian Wightman who was unable to attend because of a family illness.
"I was blown away with the farm when I first saw it a couple of months ago - this is state-of-the-art farming" Mr Gutwein said.
"To get something like this up, takes a lot of courage.
"Nic (van den Bosch) has been in my ear for over a decade now about the potential available in this area and I have to say there's no one more pleased than I, to be out here with you and the other directors to see the fruition of what was your vision."
Apsley independent MLC Tania Rattray said that she was a country girl who had grown up on a dairy farm, but had never seen anything like the Old Waterhouse Road farm.
Nic van den Bosch said that the company had applied for assistance from the Tasmanian Forest Intergovernmental Agreement to enable the development of the next two dairy conversions.
