WELLINGTON - The Commerce Commission is talking to Australian dairy companies as it investigates the dairy industry's deregulation plan for a giant single company.
Max Ould, Melbourne-based National Foods managing director, said the commission had told him it wanted to talk to several Australian companies interested in moving into the New
Zealand market after deregulation.
"We expressed under what conditions we would find it more favourable to move in.
"We would want to see divestment of some of the domestic business."
Draft legislation was presented last week which would allow the merger and deregulation to go ahead if it were enacted.
The legislation provides for the merger to proceed only if the Commerce Commission is satisfied New Zealand consumers will not be harmed, and if farmers in each of the dairy co-operatives vote to go ahead with it. Two small co-operatives are staying out of the move.
Mr Ould said his company, along with "every other Australian dairy company," was interested in New Zealand right now.
National Foods, which has a turnover of $1.1 billion, would be interested in investing in a strong and viable dairy foods company, which will be spun off if the mega-coop is created.
National Foods, a listed company whose main business is domestic, saw possibilities for longer shelf-life products in New Zealand.
"There is a very attractive cost base of producers in New Zealand. I think in terms of real growth the potential for both companies [National Foods and its New Zealand interest] is in export." - NZPA
