National Foods says further rationalisation ‘some way off’

AUTRALIA – Dairy processor National Foods has said this week that further rationalisation of Australia’s fresh milk industry is still some way off.

In a newsletter to shareholders, National Foods chief executive Max Ould said that further rationalisation would be difficult and that there is little prospect of a resolution soon.

However, chairman Barry Cap said that National Foods has a ‘bolt-on’ acquisitions strategy. This brought about 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 (15.15 million euro) net profit it achieved in the first six months.
Last week, New Zealand’s Commerce Commission blocked an attempt by National Foods to take over New Zealand Dairy Foods.