THE SA Dairyfarmers’ Association has welcomed news of the sale of a former Murray Goulburn factory at Koroit, Vic, to Bega Cheese.
Bega Cheese confirmed it would be the new owner on Wednesday with an announcement to the Australian Securities Exchange.
Bega Cheese said it would buy the site from Canadian dairy giant Saputo, for $250 million, including average inventory.
As part of the sale, Bega Cheese is guaranteed the plant’s current milk supply of 300 million litres until June 30, 2020.
The purchase is subject to approval from the Australian Competition & Consumer Commission.
The sale of the western Vic plant by Saputo was imposed by the ACCC as a condition of Saputo’s purchase of MG’s assets.
The Koroit factory produces bulk and retail butter, commodity and retail milk powders and growing up milk powder.
After some initial concern a buyer would not be found, Bega has stepped up bringing certainty to the plant’s future and clarity for South Australian and western Victorian dairy producers.
“While this was not completely unexpected it is still good to see the future of the plant to be secured in this way.” SADA president John Hunt said.
“It is clear that while the ACCC acted out of an abundance of caution in forcing the sale it did have the effect of creating uncertainty about the plant’s future.
“That future has now been made clear and SADA welcomes Bega’s entry as a milk processor into this region.
“Now we must move forward to cement the future of the Dairy Industry both in SA and Australia as a whole.”