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.”
South Waikato farm manager Ben Purua’s amazing transformation from gang life to milking cows was rewarded with the Ahuwhenua Young Maori Farmer award last night.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.