Wednesday, 11 April 2018 07:55

Oz dairy co-op Murray Goulburn sold

Written by  Sudesh Kissun
Steve Spencer. Steve Spencer.

The growth of Australia’s dairy industry is now down to the two main players Fonterra and Saputo, says dairy analyst Steve Spencer.

At issue is the commitment of the two large players and how they can restore trust in the industry for farm investors and owners, he says.

The Australian Competition and Consumer Commission last week approved Saputo’s takeover of beleaguered co-op Murray Goulburn; the takeover when completed will leave no big dairy co-ops in Australia.

With MG in its fold, Canadian dairy giant Saputo will edge out Fonterra to become Australia’s largest dairy player.

The ACCC decision requires Saputo to sell the MG Koroit Plant in western Victoria.

Spencer, Fresh Agenda, told Dairy News he wasn’t surprised by the ACCC’s decision. For the Australian dairy industry, it means competition will not ease, he says.

“Another player will get a larger foothold with access to Koroit and its milk supply and there will be no dairy co-op in the future.”

Spencer noted that MG has been in a weak state for years.

 “So the nature of processor-farmer relations, the market shares of milk intake and the product mix of the industry will evolve further. 

“We’ve got a fair way to go before change is over. I’m not sure it means the industry will grow as a consequence of the loss of MG, but that depends on the commitment of the two large players and how they can restore trust in the industry for farm investors and owners.”


More like this

Different company, no problems – Fonterra

Fonterra is disputing claims made in the April 10 issue of Dairy News that its plans to turn around the co-op’s disastrous investment in Chinese baby food company Beingmate will be hampered by the return of the company’s founder.

Board games in China

Chinese media say Fonterra’s two directors on its joint venture, Beingmate have expressed reservations about a new independent director approved by the board recently.


» Latest Print Issues Online

Milking It

Now get out!

The Beingmate saga now rocking Fonterra is unsettling farmer shareholders.

Better from grass

A new study shows milk from grass-fed cows has more of a nutrient linked to heart health than conventional and organic…


» Connect with Dairy News