The UDV’s president, Bernie Free, has expressed fear that the acquisition could lead to the disappearance of some beloved dairy products due to brand duplication. He also believes that a reduction in competition could place downward pressure on farmgate prices, threatening the viability of local farms. The UDV warns that this consolidation could also lead to job losses, reduced regional investment, and a weakening of the nation’s food supply chain. This perspective provides a powerful, on-the-ground view of how large-scale mergers can impact local producers and communities.

Despite these strong concerns, the Australian Competition and Consumer Commission (ACCC) has decided not to oppose the acquisition. The article provides this key piece of data journalism, citing the ACCC’s Deputy Chair, Mick Keogh. After a careful review, the ACCC concluded that the deal is unlikely to substantially lessen competition. This decision is based on the finding that Fonterra and Lactalis are not each other’s closest competitors, as they have different end product mixes and source milk from farmers with different production profiles.

The ACCC’s analysis suggests that the competitive landscape in Australia will remain robust, even with the new consolidation. The article notes that the ACCC believes retailers and wholesalers will continue to benefit from the presence of imports and the ability of retailers to sponsor new market entries. This analysis indicates that competition is expected to continue from other companies, such as Saputo, which will maintain a healthy market for both consumers and producers.