Another Australian Food Producer Poised To Go Overseas

While big business battles for control of the Warrnambool dairy producer,  farmers are undecided.

Nick Renyard's farm is far from the clang and clatter of city traffic and  investment bankers' offices. Bush and bird song line the road to the  third-generation dairy farmer's property nestled in the rolling green hills  south of Timboon, in Victoria's Western District.

Mr Renyard's association with Warrnambool Cheese & Butter is more than  just that of a supplier and processor. His father John was director at the  company, and Mr Renyard, 39, has owned WCB shares longer than he can  remember.

''I've had them since I was a little kid,'' he said. ''I can't remember  exactly how long I've had them but when I got them they were $2 ordinary shares  and there were 500.''

 

Almost all of Australia's main milk processors, including NSW's Bega Cheese and  the country's biggest milk processor, Murray Goulburn, have entered a global  bidding war for WCB, which until recently was little known outside its home base  in south-west Victoria

The company is well placed to take advantage of an Asian boom, which is being  fuelled by increased affluence and appetites for a more Western diet.

 

''Say, for example, Murray Goulburn took over Warrnambool, we really only  have one other major player down here [Fonterra] that we could potentially sell  milk to, but they probably have limited capacity to take more milk.''

Murray Goulburn has offered $7.50 cash per share for WCB, compared with  Saputo's $8 cash a share, which is subject to Foreign Investment Review Board  approval, and Bega's $2 cash plus 1.2 of its  shares for every WCB share, which  values the bid at  $7.57.

 

The offers came after a collapse in international dairy commodity prices and a  disastrous joint cheese venture between WCB and National Foods (now called  Lion), which weakened the company and led to an exodus of farmers to rival  processors. WCB could not afford the $50 million for its 50 per cent stake in  the venture, and cut the price of milk it was buying from farmers.

 

Mr Renyard is concerned a takeover by Murray Goulbourn, which has a 17 per  cent stake in Warrnambool, could again put farmers' milk payments at risk.

 

He points to their debt levels;  ''there have been so many figures thrown  around - anywhere from 53 per cent,'' he said. ''Murray Goulburn taking on so  much more debt should be a concern for everyone because that interest needs to  be serviced … well, it would be from farmers' payments.''

 

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Another Australian Food Producer Poised To Go Overseas

You have to sell everything.....public transport, utilities, Australian food companies and airlines.....then have foreigners run it.

 

 

 

 

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Another Australian Food Producer Poised To Go Overseas

gentle bump

 

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Another Australian Food Producer Poised To Go Overseas


@topsidesoul wrote:

You have to sell everything.....public transport, utilities, Australian food companies and airlines.....then have foreigners run it.

 

 

 

 


That's the plan, obviously...

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Another Australian Food Producer Poised To Go Overseas

The price of cheese will go down immediately it's sold-Greg Hunt.
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Another Australian Food Producer Poised To Go Overseas

according to bob katter, doug anthony was the last nationals leader to threaten to (really) cross the floor. ruddy barnie isn't leader, but he is the big star of the party.  he'll merely make a bit of noise and vote along with the rest. i doubt there are any true nationals left now.

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