The Nationals Member for Gippsland Darren Chester has welcomed today’s announcement the Australian Competition and Consumer Commission (ACCC) will not oppose the proposed acquisition of Murray Goulburn by Canadian dairy company, Saputo.
The ACCC this morning announced it had accepted a court-enforceable undertaking from Saputo to divest Murray Goulburn’s Koroit plant.
The ACCC had raised concerns that competition for the purchase of raw milk in south-west Victoria would be substantially lessened if Saputo owned the region’s two largest factories near Warrnambool, Saputo’s current Allansford plant and Murray Goulburn’s plant at Koroit.
“This announcement is welcome news for all dairy farmers who supply milk to Murray Goulburn, including those in Gippsland,” Mr Chester said.
“The proposed sale of the company to Saputo will hopefully signal the start of a period of stability and certainty for farmers, who have weathered a prolonged period of stress and financial pressure.
“Many of our dairy farms are family-run small businesses. They are the lifeblood of our country communities, so it’s important we do what we can to support them to grow and prosper.
“Dairy farmers and the broader Gippsland agribusiness sector should have confidence in the future of our region, which already supplies more than 20% of Australia’s total dairy production.
“Gippsland is a world-class dairy producer. This is the right place with the right products to capitalise on the growing demand for quality dairy products, locally and overseas.”
In a statement, Murray Goulburn said it expected the sale to be complete by May 1, 2018, subject to receiving approval from voting shareholders at tomorrow’s extraordinary general meeting and from the Foreign Investment Review Board.
