Thirty jobs will be created under a new deal between Victorian Woolworths stores and dairy producer Fonterra.
Woolworths secured the milk supplier for a 10-year contract, under which its processing facility in Cobden in rural Victoria will expand to meet the demand.
Premier Denis Napthine says the deal is a vote of confidence in the state.
“This is a great vote of confidence in the dairy industry in Victoria and particularly southwest Victoria,” he told reporters on Thursday.
AAP