Australian dairy supply chain finds favour with offshore investors

In the third of our groundbreaking five-part supply chain series we look at multinationals making a play for Australia’s dairy industry. SEE THE FULL LIST

The factory at Allansford in Victoria owned by Canadian multinational Saputo.

Australia’s five-biggest dairy processors of the past 20 years are now all owned by offshore interests.

A Weekly Times investigation into who owns the Australian agriculture supply chain shows dairy as a significant target of offshore capital over the past decade, with Canada’s Saputo, Fonterra from New Zealand, France’s Lactalis and the ASX-listed Bega Cheese each carving out significant footholds in the Australian industry.

Australia’s five-biggest processors of the past two decades – Murray Goulburn, Bonlac, Parmalat Australia, Warrnambool Cheese and Butter and Lion Dairy and Drinks – are now all foreign owned.

Saputo is the biggest player, with a footprint in Victoria, South Australia and Tasmania. The Canadian multinational sent shockwaves through the industry in 2017 when it swooped on Murray Goulburn for $1.3 billion, after having bought Warrnambool Cheese and Butter fore more than $500 million in 2014.

In more recent years, Chinese-owned Mengui Dairy withdrew its $600 million bid for Kirin Holdings’ Lion Dairy and Drinks last year after the Federal Government ruled the deal not in the national interest.

Lion’s assets were later snapped up by Bega Cheese for $534 million.

MAJOR DAIRY PROCESSING FACILITIES OWNED OR PARTLY OWNED BY FOREIGN INTERESTS

Allansford, VIC – Saputo. CANADA

Bega, NSW – Bega Cheese. ASX LISTED

Bendigo, VIC – Lactalis. FRANCE

Bentley, WA – Bega Cheese. ASX LISTED

Burnie, TAS – Saputo. CANADA

Chelsea Heights, VIC – Bega Cheese. JAPAN

Clarence Gardens, SA – Lactalis. FRANCE

Cobden, VIC – Fonterra. NEW ZEALAND

Cobram, VIC – Saputo. CANADA

Crestmead, QLD – Bega Cheese. ASX LISTED

Darnum, VIC – Fonterra. NEW ZEALAND

Darwin, NT – Lactalis. FRANCE

Echuca, VIC – Lactalis. FRANCE

Harvey, WA – Lactalis. FRANCE

Jervois, SA – Beston Global. ASX LISTED

Kiewa, VIC – Saputo. CANADA

King Island, TAS – Saputo. CANADA

Koroit, VIC – Bega Cheese. ASX LISTED

Korumburra, VIC – Inner Mongolia Fuyuan. CHINA

Laverton, VIC – Saputo. CANADA

Leongatha, VIC – Saputo. CANADA

Lidcombe, NSW – Lactalis. FRANCE

Longwarry, VIC – Lactalis. FRANCE

Maffra, VIC – Saputo. CANADA

Malanda, QLD – Bega Cheese. ASX LISTED

Morwell, VIC – Bega Cheese. ASX LISTED

Mt Gambier, SA – Saputo. CANADA

Murray Bridge, SA, Beston Global. ASX LISTED

Nambour, QLD – Lactalis. FRANCE

Penrith, NSW – Bega Cheese. ASX LISTED

Port Melbourne, VIC – Bega Cheese. ASX LISTED

Port Melbourne, VIC – Saputo. CANADA

Rochester, VIC – Saputo. CANADA

Rockhampton, QLD – Lactalis. FRANCE

Rowville, VIC – Lactalis. FRANCE

Salisbury, SA – Bega Cheese. ASX LISTED

Scoresby, VIC – Lactalis. FRANCE

South Brisbane, QLD – Lactalis. FRANCE

Spreyton, TAS – Fonterra. NEW ZEALAND

Stanhope, VIC – Fonterra. NEW ZEALAND

Strathmerton, VIC – Bega Cheese. ASX LISTED

Tatura, VIC – Bega Cheese-Tatura Milk Industries. ASX LISTED

Wynyard, TAS – Fonterra. NEW ZEALAND

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