"Following the announcement of $4.25 million of funding in the AgriTas training college and the $1.5 million Harcus River road project, this opening is another positive development in our region," Mayor Quilliam said.

"This investment by the Van Diemen's Land Company is just part of the company's plans to extend production in the area and it is more than welcome."

Mayor Quilliam said VDL's future plans for the area, worth $180 million, were a key part of the region's future.

"With increasing demand not only in the Asian market, but also from the powdered milk factory currently in development, it is essential that we are able to have adequate milk supply," Mayor Quilliam said.

"This will obviously be complemented by the AgriTas trade college, which will help ensure that we have the skills necessary to fulfil that demand."

Mayor Quilliam said about five to six full time jobs would be created out of the new dairy, which would see an additional 750 cows in pasture, increasing to 1000 cows next year.