Livestock feed maker Ridley Corporation plans to start a program to modernise its mills in the coming year.
The company commissioned a new mill at Pakenham in Victoria in late 2012, the first mill it had built since 1997.
Ridley said on Wednesday the work had given the group impetus to build more mills.
"We ... are confident in our ability to effectively construct new mills in other locations as part of a long term feed mill modernisation program we are planning to embark upon in the coming year," Ridley said on Wednesday.
The company said the new Pakenham mill, coupled with a recent improvement in sentiment in the dairy sector, would help to improve its earnings in the 2013/14 financial year.
Ridley made a loss of $21.7 million in the 2012/13 financial year, down from a profit of $7.3 million in the prior year.
The company said its earnings dropped because of price pressure in the dairy industry, reductions in the use of feed by dairy farmers, fierce competition, and restrictions on exports to some Asian countries arising from bird flu outbreaks.
Ridley shares were down two cents at 80 cents at 1317 AEST.
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