Exports of fresh Tasmanian milk directly to China is a really positive move for the dairy industry and will open up new markets for other exporters into the future, according to Tasmania’s largest dairy processor Fonterra.

Fonterra has a long standing relationship with Van Diemens Land Company (VDL) and has been processing the company’s milk under its various owners since “last century” and will play a key role in assisting the development of the VAN fresh milk brand.

“It’s a really exciting opportunity to showcase Tasmanian milk in China,” Fonterra general manager milk supply Matt Watt said.

“There’s a real sense of excitement and opportunity there, it will challenge conventional thinking [about exports].”

VDL’s Chinese owners Moon Lake Investments unveiled a bold plan on Wednesday that it would sell fresh Tasmanian milk branded with the VAN logo directly into China from next year.

The milk will be flown into Ningbo, the home town of Moon Lake Investment’s owner Lu Xianfeng. Three trial runs of product have already been sent to Ningbo, which were all described as successful.

Moon Lake aims to use 10 per cent of VDL’s milk production, or about 10 million litres, to use for the VAN milk, that will be sold in one litre cartons directly to China’s emerging middle class. It will be branded as a high end quality and premium product and marketed on Tasmania’s “clean and green image.”

Mr Watt said Fonterra had a long standing relationship with VDL and was working with Moon Lake to further improve milk quality at VDL’s Woolnorth property.

“Their aspiration [Moon Lake] is to raise the bar continuously for milk production and quantity [at Woolnorth],” he said.

The milk will not be processed by Fonterra on the North-West Coast but will be processed by Lion at Lenah Valley, as Lion has the required export licences and capabilities needed to process the milk.

Because the milk will be processed in Hobart, it will also be flown from the Hobart airport by a local airline still yet to be determined. Upgrades to the Hobart airport runway will also mean will mean the potential to use larger planes than those that can fly out of any of the state’s other airports, including those in the North-West.

Mr Watt said Fonterra was excited to be part of the plan and to continue its working relationship with VDL, even if it wasn’t going to be able to process the milk for the VAN brand.

”We are working with VDL to unlock growth within the existing farms and we are confident that we will see that milk [the 10 million litres] will be replenished,” Mr Watt said.

Check out the packaging and story behind Van Milk click here.