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

Fonterra chairman feels the heat

Frustrated Fonterra farmers called for chairman John Monaghan to take responsibility for the co-op’s financial debacle and step down.

Two re-elected to co-op

Re-elected Fonterra directors Andy Macfarlane and Donna Smit are looking forward to another three years on the board.

» The RNG Weather Report

Featured

 

A lesson in political science

The Zero Carbon Bill has just been passed into law, but not without significant misgivings from across the farming sector.

RMA not good enough

New Zealand's natural environment is now much more degraded than when the Resource Management Act was developed in 1991.

Fonterra chairman feels the heat

Frustrated Fonterra farmers called for chairman John Monaghan to take responsibility for the co-op’s financial debacle and step down.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Angry as usual

The usual culprits are angry at hearing last week that the Government and the agri sector will work together to…

Vladimir the dairy farmer

Russian President Vladimir Putin is a master tactician in taking advantage of international conflicts.

» Connect with Dairy News