Australian farmer-owned dairy co-operative Devondale Murray Goulburn has increased its milk processing capacity with the launch of new $80m plant in Melbourne.

The launch of the new plant, is said to be in line with the company’s strategy to invest $500m in its manufacturing and supply chain infrastructure, over the next five years.

According to the company, the plant will employ advanced technology and quality standards to produce pasteurised milk.

During the construction phase, the plant has created nearly 500 jobs, while it will now employ 50 people.

Additionally, the company has entered into a ten-year agreement to supply the milk produced at the plant to over 400 Coles stores.

Devondale Murray Goulburn managing director Gary Helou said, "The new site utilizes world – leading technology and quality standards that will assist in positioning Devondale Murray Goulburn as the nation’s most efficient producer of daily pasteurised milk – a market which currently utilizes approximately 20 per cent of total Australian milk production."

Construction on Devondale’s another dairy facility in Erskine Park Sydney is underway at present.

Devondale currently focuses on investing in the production of its key products including nutritional powders, cheese and liquid milk.

Earlier in June 2014, the company has announced plans to $14m at its Edith Creek manufacturing site in Tasmania, a move that will enable the company to produce a range of new dairy beverages.