Source: Open Country
Open Country has entered into a conditional agreement with the shareholders of Mataura Valley Milk to acquire the business.
Mataura Valley Milk, located near Gore, is majority-owned by The a2 Milk Company alongside its minority partner, China Animal Husbandry Group.
“The deep South is an important region for Open Country and is an area we have previously announced as targeted for significant capital investment. The acquisition of Mataura Valley Milk highlights our commitment to the South.”
“This site is a strategic investment for Open Country given its advanced, high-tech design. Its capabilities give us the opportunity to produce a different array of higher-value products that will complement our current Awarua site product range.”
Part of the acquisition agreement includes a supply arrangement with The a2 Milk Company whereby the Mataura Valley Milk site will continue processing A1 protein free milk to produce A1 protein free milk powder. Milk supply agreements with current farmer suppliers remain unchanged.
“We look forward to working with the team at Mataura Valley Milk to fully utilise the site’s capability. In doing so, there will be an exciting opportunity for new farmers to add to the existing supply group and join the wider Open Country family of farmer suppliers.”
On 26 August, both de Lautour and Open Country’s Board Chair, Laurie Margrain will join the a2 Milk Company CEO David Bortolussi to meet with Mataura Valley Milk staff and current farmer suppliers.
“We are all very much looking forward to meeting everyone and sharing our excitement around this purchase.”
“At Open Country we are focused on ensuring we are in a position to provide dairy farmers with genuine choice. Choice that benefits farmers, our staff and the New Zealand dairy industry as a whole. This has flow-on benefits to the New Zealand economy and the communities in which we operate given our 100% New Zealand ownership.”
Founded in 2001, Open Country is now New Zealand’s second largest milk processor and the world’s second largest exporter of whole milk powder. It currently has six production sites across New Zealand and a head office location in Auckland.
