Publicly-listed Australian produce company Costa Group (ASX: GCG) expects an extension of its distribution center and modified atmosphere storage facility at Devonport, Tasmania, to generate 130 new jobs.

Newspaper The Advocate reported Costa corporate affairs manager Michael Toby said the expansion would help boost the local berry industry.

"It’s the only region where we grow the four major berry categories, so blueberries, raspberries, strawberries and blackberries,” Toby was quoted as saying.

"We can now grow more berries, so we can go and develop existing farms and we can start new farms and plant additional hectares knowing that we will have the capacity to store that here, pack and ship," he told the publication.

The Tasmanian Jobs and Investment Fund has slated AUD$1.2 million (US$872,598) in funding for the project, which entails a total investment of AUD$8.6 million (US$6.25 million).

The fund has pledged a total of AUD$3.3 million (US$2.4 million) in total for produce companies in the state, including Burlington Berries, Island Berries Tasmania, Mill Farm Berries, Tasmanian Berries and William Smith & Sons.

Including Costa, these six produce groups have AUD$14.9 million (US$10.8 million) worth of total investments planned, with projects ranging from the establishment of poly tunnels to apple cider operations.

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