Australian Dairy Farms Group’s (AHF) subsidiary Camperdown Dairy, has signed a new processing agreement with an undisclosed international food company.

Since August 2017, Camperdown Dairy senior officials are said to have been developing the business deal with the food company, and recently signed a multiyear contract with them.

The dairy firm intends to start the production of new products from July, and the company is planning to expand its capacity immediately in order to accommodate the new product range.

"The expansion works will be carried out at the existing facility with an investment of A$750,000 ($568,605)."

The expansion works will be carried out at the existing facility with an investment of A$750,000 ($568,605).

The products manufactured by Camperdown Dairy claim to be new to Australian market and will be launched by August this year through a retail supermarket chain.

The multiyear contract is expected to exceed A$30m ($2.27m) sales in the first four years of production.

Over the past two months, Camperdown Dairy will reportedly carry out manufacturing trials for the new products at its facility located in Camperdown, Victoria.

The deal with the food company is said to be part of Camperdown Dairy’s corporate strategy to gradually exit from the conventional white milk production business and enter into the production of high value-added products. It will also perform contract packing activities of premium brands owned by others.