Australia’s largest food company is watching China for the next two decades. After a public fight to buy the $500 million Warrnambool Cheese and Butter (bought by Saputo of Canada, instead of two competing two Australian companies) brought dairy to the focus of the country’s export market, food company Murray Goulburn expects consolidation of the nine remaining processors in the country.
Murray Goulburn’s managing director, Gary Helou, said he expects the number of processors to be inevitably be half of the current number in just a few years. Murray Goulburn is Australia’s number one dairy exporter, processing one third of the country’s 9 billion liter (20.5 billion pounds) milk shed.
Helou encouraged Australian farmers to invest in their farms to drive the country’s production to 15 to 20 billion liters (34 to 45.5 billion pounds) of milk per year.
Source: Financial Review