DFTVLOGO2015WEBSITED

 Cattle news     Sheep News    Dairy news  Cropping News
Friday, 27 October 2017 12:24

Saputo swoops

The fate of embattled dairy processor Murray Goulburn Cooperative - until recently Australia's largest - has been settled with news that it is to be acquired by the family-owned Canadian processor Saputo.


In a letter to Saputo suppliers, chair Lino Saputo Jr, said the company was pleased to make the purchase announcement.
"We are pleased to advise that Saputo has announced today it has entered into an agreement to acquire the business of Murray Goulburn Co-operative Co. Limited  – one of Australia’s largest dairy food companies," he said.
"The transaction is subject to the usual conditions and requires several approvals including MG Shareholder, Foreign Investment Review Board, Australian Competition & Consumer Commission clearance, and is subject to an Independent Expert concluding that the transaction is in the best interest of MG shareholders. This transaction is expected to close in the first half of calendar year 2018. 
"Under the agreement, Saputo has committed, for a minimum of five years from the FY19 season, to pay Active MG Suppliers a market competitive farmgate milk price.
"This will be the greater of the WCB farmgate milk price and the average of the farmgate milk price of the two largest milk processors in the Southern Milk Region or NSW milk region (as applicable) at the relevant time. We view this commitment no differently to the one Saputo made when acquiring Warrnambool Cheese & Butter (WCB) in 2014.
"Be assured that in accordance with our milk price policies, suppliers (both WCB and MG) will be offered the same milk price. We are committed to continuing to pay leading competitive milk prices in the Australian market to our suppliers and growing our milk volumes. 
MG is a leading dairy processor and produces a full range of high-quality dairy foods, including drinking milk, milk powder, cheese, butter and dairy beverages, as well as a range of ingredient and nutritional products, such as infant formula. MG supplies the retail and food service industries across Australia and globally with its flagship Devondale, Liddells and Murray Goulburn Ingredients brands. 
This is an exciting time for Saputo. Upon acquiring WCB in 2014, Saputo stated its intentions to grow the business in Australia. This acquisition highlights the key strategic importance of the Australian dairy industry within Saputo’s global business. It will enable us to significantly increase product presence, footprint and market reach in Australia and across global markets. This will benefit milk suppliers and the Australian dairy industry."

 

Read 1924 times
Login to post comments

Join us. It’s free!

Link up with some of the best brains in Australian agriculture. Enter your email and we’ll share the best of national agribusiness news, videos and apps every Friday.