Forget about another share trading review
Former Fonterra director Nicola Shadbolt says the recent collapse of a few dairy cooperatives should be blamed on their strategy, not their co-op structure.
Canadian dairy giant Saputo is buying beleaguered Australian dairy processor Murray Goulburn for A$1.3 billion.
The deal is expected to be ratified by MG shareholders at a meeting later today.
If approved, Saputo will become one of Australia’s largest dairy processors; the company entered the Australian market after buying Warrnambool Cheese and Butter Company three years ago.
Fonterra, which was also vying for Murray Goulburn, misses out on another key Australian asset; it lost a bid for National Foods 10 years ago.
Saputo’s deal with MG includes paying an extra A40c/kgMS for milk this season; MG suppliers will get A$5.60/kgMS from November 1.
Murray Goulburn chairman John Spark says the board believes that the transaction “represents the best available outcome for our suppliers and our investors”.
“Saputo is one of the top ten dairy processors in the world and active in Australia through its ownership of Warrnambool Cheese & Butter (WCB).
“This transaction will crystallise real value for MG’s equity, whilst rewarding our loyal suppliers through the milk supply commitments.”
Spark says MG has reached a position where, as an independent company, its debt was simply too high given the significant milk loss.
“Securing a sustainable future for MG’s loyal suppliers is of paramount importance to the Board. We are pleased with the strong milk commitments secured as part of Saputo’s offer to reward this loyalty.
Saputo has demonstrated itself to be a credible and trusted partner for Australian dairy farmers through its investment in WCB. The transaction has the unanimous support of the MG board.”
Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
The Food and Agriculture Organisation of the United Nations (FAO) has welcomed a resolution adopted by the United Nations (UN) General Assembly to declare 2026 International Year of the Woman Farmer.
Waikato herd health veterinarian Katrina Roberts is the 2024 Fonterra Dairy Woman of the Year.
Horticulture NZ chief executive Nadine Tunley will step down in August.
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OPINION: It seems every bugger in this country can get an award these days.