Bega Cheese (ASX:BGA) is looking to establish a new lactoferrin plant at its Koroit facility in Western Victoria with an investment of approximately $34 million.
The company has secured a long term lactoferrin supply agreement, which will support the new plant.
Lactoferrin is a naturally occurring iron-binding protein found in milk that is known for its anti-microbial, anti-inflammatory and immunological properties.
As a high value and functional ingredient, lactoferrin is used globally in a range of consumer health and nutritional food products including infant formula.
Bega is an established manufacturer of lactoferrin having been producing the protein at Tatura since 2002.
This investment at Koroit will position Bega as one of the largest manufacturers of lactoferrin globally.
Bega Cheese (ASX:BGA) closed 1.25 per cent lower to $4.74 yesterday.