Australian manufacturer Bega Cheese announced Wednesday it has signed a five-year agreement with supermarket chain Coles to sell its cheese products.

With the deal, Bega Chief Executive Officer Aidan Coleman said the firm - which used to source its milk from New Zealand - will only use Australian milk from Victoria farmers to produce 19,000 tonnes of cheese products yearly.

The agreement will create 30 new jobs at Bega's plants in Victoria and New South Wales, he said.

Coleman said Bega would need an additional 70 million litres of milk worth $30 million to produce the cheddar and mozzarella products that Coles will sell.

"Coles currently acquires the mixture of domestic and internationally sourced product, and they were very, very keen to go to wholly Australian product," Coleman said in a statement.

Bega is Australia's fourth-largest dairy company. The firm will soon launch its initial public offering worth $375 million with the Australian Securities Exchange following the approval in April of shareholder farmers of the public listing. In the vote, 89.4 per cent of the farmers favored the IPO.