A $500,000 grant for The Little Big Dairy will allow the company to expand and provide new employment opportunities.
It will be used for a new shed for storage and office space, along with the purchase of a fully automatic wraparound case packing machine to replace its current hand-packing system.
Little Big Dairy chief executive officer Jim Elliott said it was a huge boost for the family run business.
"We'll be able to increase our staffing in a range of areas from administration to sales, distribution, and in the milk factory itself," he said.
"We've currently got 40 people employed, and this grant will see us double that figure over the next three years."
Dubbo MP Dugald Saunders said the new machine would make a huge difference to output while reducing production costs, allowing the company to employ more staff in manufacturing, administration and logistics.
"The new automated packing machine will improve efficiency and reduce wastage by up to 40 per cent, lowering costs of production, and doubling its capacity to produce milk from 5 million litres a year to 10 million litres by 2024," he said.
"This project will also upskill existing employees to be higher-level operators and promote some employees from hands-on positions to supervisory roles."
Deputy Premier John Barilaro said the Regional Job Creation Fund aimed to help businesses expand production and provide incentives to move operations to the bush.
"Regional NSW is the engine room of the state and providing support to companies like The Big Little Dairy Company to expand their operations helps to stimulate regional economies, boost livelihoods and provide local employment," Mr Barilaro said.
Under the Regional Job Creation Fund, eligible businesses can apply for grants to support the purchase of new equipment, expand facilities, create new iconic tourist experiences and visitor attractions or relocate businesses from out of state to regional NSW, which will lead to the creation of new jobs.
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