Lower North Island farmers “cautiously optimistic” heading into winter – DairyNZ
Cautiously optimistic is how DairyNZ's regional manager for the lower North Island, Mark Laurence describes the mood of farmers in his patch.
AUSTRALIAN DAIRY PROCESSOR Warrnambool Cheese and Butter (WCB) has supported a $390 million take-over offer from Canadian processor Saputo – just weeks after it rejected a take-over offer worth $320 million from fellow Australian company Bega Cheese.
In a shock revelation, the two parties made a joint announcement on October 8.
WCB managing director, David Lord, said the company recommended all shareholders accept Saputo’s offer of $7 a share, in the absence of a superior proposal.
“Saputo’s offer underscores the strategic value of WCB’s assets and vindicates the board’s decision to reject Bega’s inadequate, highly conditional offer,” Lord said.
“Saputo’s all cash offer provides greater certainty for WCB shareholders and a substantial premium for their WCB shares.”
Saputo is one of the top 10 dairy processors in the world. It is the largest dairy company in Canada, the third largest in Argentina and one of the three biggest cheese manufacturers in the US.
It exports products to 40 countries around the world and has sales of C$8.6 billion.
Saputo’s offer is subject to approval by the Foreign Investment Review Board and conditional on Saputo gaining at least 50.1% of WCB shares.
An application was lodged with the investment review board about September 10, but he had not yet received any feedback.
Lord said foreign investment in the Australian dairy industry in the past 50 years had provided the foundations for today’s industry.
“Kraft, Nestle, Fonterra – they’re three big international investors who came to this country and invested heavily in the dairy industry and grew it for the benefit of all the current participants,” Lord said.
“I think suppliers should be excited about this transaction and its potential.
“Saputo are planning to invest in this business. If we increase capacity and capability we need milk supply to support that.”
The Saputo bid will remain on the table until early December. Bega’s offer is slated to close on November 28.
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…
OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…