Dairy needs super co-op, says Helou

27 November 2013

Australia’s dairy processors will be “absolutely whacked” by multinationals unless a super co-operative is formed, Murray Goulburn managing director Gary Helou says.

As the fight for Warrnambool Cheese and Butter (WCB) reaches its zenith – with Canadian Saputo offering up to $9.20 a share on Monday morning – Murray Goulburn will make direct appeals to WCB shareholders at two public meetings this week, in western Victoria and South Australia.

“If we remain a $500 to $600 million dollar turnover business, well guess what? The big guys are going to come in and whack you,” Mr Helou told Murray Goulburn shareholders at the co-operative’s annual meeting in Melbourne on Friday.

“Absolutely whack you, like they’ve done with Warrnambool.

“It’s not of a scale that can defend itself. Warrnambool and us [would] achieve a defendable base.”

Some analysts have suggested Murray Goulburn should team up with Bega to squeeze out Saputo, with the two companies owning about 35 per cent of WCB.

But Mr Helou told Murray Goulburn shareholders that the board was not considering that option.

“The brutal reality is we are not going to sell into Bega,” he said. “Bega has got to sell into us, or merge with us.

“We are a co-operative. We don’t want to mess with that structure. It’s absolutely non-negotiable.”

Source: Australian Dairy Farmer online, 25 Nov