Country News

Milk price not impacted, says MG and Saputo

By Alana Christensen

Saputo and Murray Goulburn have moved to calm concerns that a divestment of Murray-Goulburn's Koroit plant could have an effect on the proposed milk price.

The Canadian company has been forced to put the Koroit processing plant up for sale after the Australian Competition and Consumer Commission last week announced they held concerns about what Saputo's planned takeover of milk processor Murray Goulburn would mean for competition in south-west Victoria and south-east South Austalia.

"The proposed divestment of the Koroit dairy plant by Saputo does not have any impact on the terms of the asset sale, including...Saputo’s previously announced milk supply commitments," Murray-Goulburn said in a statment.

Saputo initiated discussions with the ACCC on Monday in a bid to obtain the ACCC clearance for the take-over of Murray Goulburn.

A final decision regarding the deal is expected on March 29.