A plan to export Tasmanian milk to China should be welcomed as a promising economic opportunity for the state.
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VDL’s Chinese owner Moon Lake Investments has opened a door for Tasmania by unveiling a bold plan on Wednesday to sell fresh Tasmanian milk branded with the VAN logo directly into China from next year.
Moon Lake, led by Lu Xianfeng (left), aims to use 10 per cent of VDL’s milk production, or about 10 million litres, for the VAN milk, which will be sold in one-litre cartons directly to China’s emerging middle class.
The fact it will be branded as a high-end quality and premium product, marketed on Tasmania’s “clean and green image”, shows what it means for the state.
China is a colossal source of potential markets for Tasmanian producers and the state is uniquely positioned by its natural heritage, biosecurity and quality produce to take advantage.
It needs to grab the opportunity.
Currently Tasmania’s milk is an unsung hero in many ways.
The majority is processed and used in non-branded dairy products such as milk powder, yoghurt and cheese.
With VAN milk, Tasmania’s brand will gain exposure to all of its Chinese customers.
Buyers will be curious to know more about where the product comes from.
It ultimately helps Tasmanian tourism.
There are possible synergies to be used for other state producers, who could fly their food products directly to China with VAN and share the cost of transport.
It’s easy to see the number and size of flights growing. The more successful VAN is in China, the more opportunities for Tasmanian producers to get product on those flights.
The VDL plan is an example of a Tasmanian industry being given an important and potentially long-lived role in a growing part of the global economy.
Communities in the North and North-West have struggled as their core industries – such as forestry and mining – have declined.
These economic challenges require an openness to new ideas and markets on Tasmania’s part. Future sources of wealth for the state will inevitably involve new sources of foreign investment, new customers for our products and new ways of using what we have.
The VAN milk venture represents all three.