Coles seeks security ands certainty, in buying two milk processing factories

"Coles' purchase of two milk processing factories has been described as a "strategic acquisition", by one leading food industry analyst.

Melbourne-based Fresh Agenda director Steve Spencer said the purchase of the Victorian and NSW factories, from Canadian dairy giant Saputo Dairy Australia for $105 million, was no surprise.

"Milk production has been dropping for a long time, the owner of the asset probably flagged their interest in moving them on, so it's logical," Mr Spencer said.

"It's a very strategic acquisition for the security of that business - they [Coles] used to have milk plants a long time ago.

"They do it for a reason and the reason is security and certainty - in this industry, at the moment, there isn't a lot of that."

To read the article in full, go to: The Standard

Source: Andrew Miller, 5 April 2023