Carbon Conscious moves into dairy

Carbon Conscious plans to expand its business into the dairy sector, announcing plans to purchase a South West dairy property and link up with a Chinese trading group.

Carbon has entered into a memorandum of understanding with Green Lake, which has a long-term supply deal for Western Australian and Australian products to be distributed and sold in China, with the hope of achieving a connection into the Chinese export market.

Australian fresh milk retails from $8 to $10 per litre in Chinese supermarkets.

In a statement, Carbon said it had also entered into non-binding terms to secure the rights to a long-term lease on an existing dairy property in the South West, which would include rights to a cow herd and would be used to satisfy initial milk supply to Green Lake.

“The company’s strategy is to progressively expand the herd, land and infrastructure to match growing supply contracts,” Carbon said.

“All milk will be processed in WA by local processors that currently have significant surplus capacity.”

Carbon also plans to change its name to Alterra Limited to reflect its broader agricultural ambitions.

Executive director Andrew McBain said Green Lake was an ideal partner given its wealth of experience and network capabilities in both China and Australia.

“The memorandum of understanding serves as a stepping stone for the company to develop into a larger agribusiness, firstly with the production and distribution of milk and with the potential to expand into other products,” Mr McBain said.

“WA is on the doorstep of a large and growing market in China and Asia overall, and Carbon is poised for exposure to the region’s export upside potential as it develops its arrangement with Green Lake to match supply and demand as the business grows.”

Carbon shares closed 8.4 per cent higher to 9 cents each.