Second Largest Processor Finalizes Acquisition and Confirms Record Farmgate Payment for Turmoil-Stricken North Island Co-op 🤝.
Open Country Dairy (OCD), New Zealand’s second-largest milk processor, has finalized its surprise acquisition of Taupō-based processor Miraka, following media reports that Miraka was facing serious financial strife and potential liquidation. This move represents a major consolidation in the country’s dairy processing sector. Open Country’s chief executive, Mark de Lautour, reassured Miraka suppliers of a confident future, acknowledging the recent “difficult and turbulent period” for the smaller, previously Māori-owned firm, which had grown to become the nation’s second-largest Māori-owned exporter since its founding in 2010.
Despite the recent turbulence, Miraka farmers will receive a record final base milk price of $10.16 per kgMS for the 2024-25 season. This payout aligns closely with, and even slightly exceeds, the record final milk prices paid by major competitors Fonterra and Synlait, signaling a strong underlying market for the raw product. Crucially, Open Country confirmed it would also honor the previous owners’ commitment by paying an average of $0.17/kgMS via the Te Ara Miraka payments, a program supporting farming excellence.
The acquisition immediately strengthens Open Country’s national footprint. By integrating Miraka’s assets, OCD now operates a network of five sites across the country, with a sixth site pending the finalization of the separate purchase of Mataura Valley Milk. Open Country had previously paid $125 million to the a2 Milk Company and its Chinese joint venture partner for the Mataura Valley plant, highlighting its aggressive strategy of capacity expansion across New Zealand.
For the international dairy market and local stakeholders, Open Country is emphasizing a smooth transition. Mr. de Lautour has already begun optimizing milk deliveries by working with Central Transport Limited and plans to meet with Miraka suppliers this month to provide market updates and share Open Country’s nationwide strategy. This outreach is aimed at fostering confidence and collaborating to ensure the Mōkai site thrives long-term, despite the inherited challenges associated with being a stand-alone regional processor in a volatile global market.
The former Miraka chair, Bruce Scott, expressed pride in the company’s 15-year history of growth, reaching production of around 300 million liters of milk per year. He noted that being part of a strong NZ-owned network under Open Country’s ownership would secure the future for the “Miraka whānau” (family) by mitigating the significant hurdles faced by a smaller operator. The Miraka name and brand will be maintained in the market, focusing on long-term benefits for its community, kaimahi (staff), and customers.
Source: Get the full details of this dairy merger from Rural News.
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