The investigation is specifically focused on the potential impact on the acquisition and processing of raw milk, where Bega and Fonterra currently have overlapping operations. Both companies are substantial purchasers of milk directly from Australian dairy farmers, especially in Victoria and Tasmania. The ACCC will scrutinize whether combining these operations would lessen competition for milk supply, potentially affecting the prices paid to producers and the overall dynamics of the dairy market.

Beyond raw milk, the ACCC’s review extends to the broader competitive landscape for dairy products and ingredients. The watchdog is examining whether the proposed deal would reduce competition in the wholesale supply of various dairy items to retailers and food service outlets. This comprehensive approach ensures that all levels of the supply chain are considered, from farm gate to consumer, in the context of this major industry consolidation.

To gather comprehensive insights, the ACCC is actively seeking public feedback on the proposal. Industry stakeholders, dairy farmers, and other interested parties have until August 15 to submit their views. This public consultation period is a critical component of the ACCC’s process, designed to ensure transparency and gather diverse perspectives before making a final determination on the acquisition’s competitive implications.