Perth-based camel milk producer Good Earth Dairy is a step closer to building a $20 million dedicated dairy processing facility after securing a $4.4 million grant from the WA Government.
The proposed facility, which comes ahead of Good Earth Dairy’s plans to list on the ASX in the second quarter of next year, will be Australia’s first dairy solely for the production of fresh and powdered camel milk products.
The $20 million facility, which is scheduled for completion in 2026, will have the capacity to process about 22 million litres of camel milk a year, helping Good Earth Dairy expand its distribution channels beyond WA and into global markets.
Ahead of a planned IPO next year that aims to drive the company’s international expansion plans, Good Earth Dairy last week launched a bridging round via an equity crowdfunding campaign undertaken on the OnMarket platform.
The crowdfunding will assist the company to boost its existing production capabilities while construction of the new dairy gets under way.
Launched in 2016, Good Earth Dairy has been capitalising on growing consumer demand for dairy alternatives.
With its sole focus currently on the WA market where it distributes fresh camel milk through local supermarkets, the company says it has achieved more than $2.4 million in revenue since distribution began, with growth of 200 per cent recorded over the past year.
“Australia, particularly Western Australia, is in a unique position to be a global leader in camel milk production,” says Good Earth Dairy founder and CEO Marcel Steingiesser.
“If we were to rely on breeding, we would be very limited, but we have access to a huge supply of camels in outback WA.
“We have the livestock, the technology, the climate and the opportunity; now we have the backing to take everything to the next level and begin growing on an international scale.”
Camel milk is sold at a premium to cow’s milk, retailing in Australia for between $13 and $20 a litre.
The milk is said have low allergens and high nutritional value, with significantly lower saturated fat than cow-derived products while being easier for infants and adults to digest.
Good Earth Dairy has developed new products to diversify its product range with the aim of meeting growing demand for camel dairy products domestically and internationally. The product range proposed by the company includes beverages, ice cream and cheeses.
The completion of Good Earth Dairy’s new processing facility in 2026 will also put the company on track to enter the infant formula market.
Good Earth Dairy says the $4.4 million government grant will be applied to increasing its farm capability and primary production, creating more than 90 new jobs once the assets are fully utilised.
Good Earth Dairy currently operates on an 800ha property with a herd of 160 camels and another 200 on order.
“We’ve spent seven years and $9 million developing IP for camel domestication, husbandry, farm design and processing with a focus on maximising yield and the aim of becoming the lowest cost producer of camel milk globally,” says Steingiesser.
"As we bring the cost of camel milk lower and lower, we stand a good chance of being able to compete with the $840 billion (global) dairy market.”
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