Bega to gain full ownership of Tatura Milk

Australian dairy cooperative Bega Cheese is planning to gain full ownership of Tatura Milk by acquiring the remaining 30% stake for A$42.7m (US$40.47m)

The company acquired a 70% stake in April 2007 in a deal worth A$38.8m (US$36.7m) during a time of losses and prolonged drought for Tatura.

Bega group head Barry Irvin said that Tatura gives the company a good balance and expands not only its geographical footprint within Australia, but also its market reach internationally.

"The mix of products expands and complements Bega Cheese’s range of export and domestic products," Irvin added.

Tatura Milk, located at Tatura in regional northern Victoria, Australia, processes approximately 450 million litres of milk each year and produces Australian dairy ingredients for the global market.

The company is known for nutritional infant formulas, milk powders and cream cheese, and produces approximately 70,000t of manufactured products per year.

Bega Cheese’s dairy products unit manufactures a total of 20,000t of bulk cheddar, whey powder and butter per annum and its processing and packaging unit produces 50,000t of value-added cheese products.