Murray Goulburn and IYC 2012

Last Updated on Sunday, 22 January 2012 08:27 Written by David Griffiths Sunday, 22 January 2012 01:44

The importance of the Murray Goulburn Co-operative Co Ltd to the International Year of Co-operatives is demonstrated in a recent report by the Rural Industries Research and Development Corporation - Foreign Investment and Australian Agriculture (November 2011)

The report notes that more than half the milk produced in Australia is now processed by foreign owned firms

Lion/ National Foods/Kirin (Japan) 25%
Fonterra (New Zealand) 21%
Parmalat (France) 7%

The Australian-owned co-operative Murray Goulburn Co-operative Co Ltd is the largest dairy processor - processing about 35% of milk produced. Fonterra is a co-operative in New Zealand but in Australia's its suppliers are not members of the co-operative.

The report notes: "Foreign ownership of milk processing capacity appears to have been beneficial for the industry. The three major foreign investors, Fonterra, Kirin and Parmalat, have, in common with others such as Murray Goulburn, injected funds to improve efficiency and maintain their profitability while at the same time engaging in some winding down of existing, out-of-date capacity." The Australian suppliers of these foreign owned companies do not, however, own and control the companies.

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