CANADA: Agropur, Farmers Dairy propose merger
Agropur, Farmers Dairy plan tie-up
Canadian dairy cooperatives Agropur and Farmers Co-operative Dairy plan to merge their operations.
Announcing the move, the dairies said it would benefit their farmer-owners by providing national scale and accelerating a process of consolidation that - they hope - will help make the Canadian dairy industry more sustainable.
"We believe that the new merged entity will be well equipped to ensure a sustainable dairy industry in the Atlantic Provinces" said Farmers Co-operative Dairy chairman Jeannie van Dyk yesterday (11 February).
Agropur said the deal would benefit its members and customers. "The merger will allow us to better serve our customers on a national basis, and support the overall objective of consolidating the cooperative milk processing sector for the benefit of the member dairy farmers," Agropur chairman Serge Riendeau said.
Agropur dwarfs Farmers Co-operative Dairy. The company's has 25 plants in Canada and the US and generates annual sales of over C$3.6bn (US$3.58bn). Farmers Co-operative Dairy turns over C$176m a year.
The proposed merger will be submitted to members for approval during separate meetings on 12 March. The companies aim to complete the merger by 2 April.
FARMERS CO-OPERATIVE DAIRY LIMITED AND AGROPUR COOPERATIVE MERGE
Bedford, Nova Scotia and Longueuil, Québec, February 11, 2013 - The Board of Directors of Farmers Co-operative Dairy Limited, well-known in Atlantic Canada, and the Board of Directors of Agropur cooperative, the largest dairy cooperative in Canada, are extremely proud to announce the merger of its two organizations.
"By joining forces we believe that the new merged entity will be well equipped to ensure a sustainable dairy industry in the Atlantic Provinces" said Jeannie van Dyk, Chairman of Farmers Dairy and a dairy farmer from Noel Shore, Nova Scotia. "This is a great opportunity for our members to continue to have a voice in the marketing of their milk through ownership in a large national cooperative organization."
"The merger of our two cooperatives is a first for Agropur in decades. The merger will allow us to better serve our customers on a national basis, and support the overall objective of consolidating the cooperative milk processing sector for the benefit of the member dairy farmers", added Serge Riendeau, Chairman of Agropur and a dairy farmer in Coaticook, Quebec.
The proposed merger and related arrangements will be submitted for approval by the members during separate Special General Assemblies, which will be held on March 12, 2013. The targeted date for the merging of activities is April 2, 2013. This is subject to approval from the appropriate authorities.
About Farmers Dairy
Farmers Dairy has been a part of the community in Atlantic Canada for more than 90 years. Owned by 116 member dairy producers and posting annual sales of $176 million, the mission of Farmers Dairy is to provide Atlantic Canada with top-quality, locally produced dairy products. Farmers Dairy is currently the number 1 brand in Nova Scotia, and its customers in Newfoundland and Labrador have made its Central Dairies brand "It's the milk we're made of" for 50 years. For more information, visit the organization's website, at www.farmersdairy.ca.
Founded in 1938, Agropur is an important player in the North American dairy industry. With sales of $3.6 billion, the Cooperative is a source of pride for its 3 288 dairy producer owners. Agropur processes more than 3.2 billion litres of milk per year in its 25 plants across Canada and the United States. For more information, visitwww.agropur.com.
Original source: Agropur, Farmers Cooperative Dairy
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