Dairy boss predicts more mergers

This therefore leaves the domestic mergers to international players in Australia - New Zealand‘s Fonterra, Italy‘s Parmalat, and Lion, which is owned by Japanese beer and dairy company Kirin. "Murray Goulburn is focused on its own strategy of growth through expansion into value add products such as nutritional powders, consumer cheese and dairy beverages both in Australia and importantly in the strategic markets of Asia and the Middle East," Mr Helou said.

Mr Helou had argued for a nation champion or super cooperative to be created during the bidding for Warrnambool, which Canada‘s Saputo eventually won, to make Australia more compatibly globally. "I still maintain that the industry is too fragmented and the promise of consolidation will come through evolution not revolution," Mr Helou said on Wednesday. "There is not enough money to be made by all players in the Australian dairy market so many players will either have to consolidate or venture internationally.

He said Murray Goulburn, which has 37 per cent of the national milk supply, would continue to be aggressive in the year ahead, believing the cooperative could double the 3. 4 billion litres it currently processes. "We want to grow the Australian milk pool and also our share of the Australian milk pool.

Murray Goulburn managing director Gary Helou says Australia’s "stagnant" milk production means that some of the countries biggest dairy companies will have to merge in coming years.

Read more here: SMH


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