A growing northern Victorian milk supply company has expressed some interest in the factory being closed by Murray Goulburn at Rochester.
The milk supply company, ACM, which formerly owned part of the Shepparton Pactum plant, is about to build its own factory in the region.
ACM chairman Michael Auld said the company hoped to have secured a site in northern Victoria by the end of this financial year, and would take a look at the Rochester factory if Murray Goulburn put it on the market.
He said it would be imprudent not to explore what was possible at Rochester as ACM was planning a milk processing facility.
Although ACM sold its share of the Pactum partnership with Freedom Foods, the company still provides about 30 per cent of its milk supply to the Shepparton Pactum UHT plant under a long-term contract.
Recently the company has been inviting suppliers to convert to organic milk production which can attract a premium market value.
Mr Auld said ACM had about 25 farmers converting to organics during the next few years.
Mr Auld said his company, which collects about 300million litres of milk, was expecting a lift of about five per cent in volume with improved conditions next season.