Bega last week received backing from Tartura shareholders over a proposed AUS$39m offer to acquire a 70 per cent stake in its operations, by a majority of 97 per cent.

The move is indicative of a shifting climate in the dairy market to tap into alternative demand for added-value health and wellness goods throughout the country and the wider Asia Pacific region.

As such, the company will use Tartura's ranges of cream cheese, powders, infant formula and neutraceuticals, to compliment its existing natural and processed cheddar operations.

Barry Irvin, Bega Cheese's chairman, said the move would be beneficial for both companies, by expanding their operations in both new and existing markets.

"Access to an expanded product range, significant milk pool and high quality infrastructure will enable Bega Cheese to build on the success of its existing business while at the same time adding value to both Bega Cheese and Tatura Milk," he stated.

According to research by consumer analyst Euromonitor between 2001 and 2006 the markets for yoghurts and non-milk dairy products in Australia has risen by 50 per cent and 34 per cent respectively.

The growth has allowed the industry to offset a slow down within growth of milk products that rose just 14.3 per cent respectively.

The move follows a similar move into the region by Dutch group Numico, in a bid to step production of value added products.

In February, Numico increased its stake within Indonesian group Sari Husada, to continue significant investment into functional foods.

Over the last few years Numico has made a significant investment into the Asian Pacific market for these products. This has included the purchase of East Asiatic Co's (EAC) nutrition businesses, including the Dumex brand, for €1.2bn at the tail end of 2005.

The company revealed that its increased focus within the region had been driven by 20.3 per cent growth, making it an increasingly key market within the industry.