Nat Foods: Consolidation is not yet imminent

Dairy processor National Foods has said that further rationalisation of Australia’s fresh milk industry is still some way off.
In a newsletter addressing shareholders, National Foods chief executive, Max Ould, said that further rationalisation would be difficult and that there was little prospect of a resolution soon.
The news came just a week after New Zealand’s Commerce Commission blocked a National Foods bid for New Zealand Dairy Foods (NZDF).
The bid was stopped due to fears it would stifle competition in the yogurt and dairy dessert markets. National Foods already markets yogurt and dairy desserts under the Yoplait brand in New Zealand.
However, chairman Barry Cap said that National Foods had a ‘bolt-on’ acquisitions strategy. This approach resulted in last year’s purchase of gourmet brand King Islands.
National Foods has also gained the licence to market the Yoplait brand in China.
Also in the statement, National Foods said that it expected profit for the second half of the year to be ahead of the A$25.1 million (E15.15 million) net profit it achieved in the first six months.
In a statement released in February, National Foods said that its application to the Commerce Commission to acquire NZDF did not mean it wanted to bid for the company.