Saputo in ACCC talks

CANADIAN dairy giant Saputo has started talks with Australia’s competition watchdog on a possible sale of the Koroit dairy processing plant in Victoria, which is currently operated by dairy processor Murray Goulburn.

The Australian Competition and Consumer Commission last week expressed concern that Saputo’s proposed takeover of Murray Goulburn could have a negative effect on competition for farmer’s milk in one region.

The ACCC said it has concerns about the combination of Saputo’s Allansford plant in western Victoria, and Murray Goulburn’s Koroit plant, also in western Victoria.