Coles has entered into a partnership with Bega Cheese as part of its ‘Australia First’ sourcing initiative.

The supermarket giant has offered the dairy processor its entire housebrand cheese business as part of a five year contract. This means that the current 50 per cent of Coles’ brand cheese that is sourced from New Zealand will now be produced in Australia.

Coles merchandise director John Durkan said Coles wanted to see its housebrand cheese be produced locally.

“This contract is great news for both Bega and the Australian dairy industry, and further underlines Coles’ commitment to develop long-term, mutually beneficial partnerships with Australian rural producers,” he said.

According to Bega Cheese CEO Aidan Colesman, this will inject an extra $30 million into the Australian dairy industry including creating 30 new roles across the company.

Bega will being producing Coles brand cheese from February 2012.