Dairy giant Agropur Cooperative and Dairytown Products have proposed a merger of the companies.
Agropur Cooperative said the decision was indicative of its desire to keep dairy processing assets “in the hands of producers wherever possible”.
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“It will also increase our critical mass in the region and help secure our long-term presence in Atlantic Canada,” said Serge Riendeau, president of Agropur Cooperative.
Beneficiaries of Dairytown Products, which supplies dairy products and ingredients to the retail and food service industries, will be asked to vote on the propsed merger.
Subject to due diligence review and Competition Bureau authorisations, the two organisations should reach a final agreement in a few weeks.
“This is excellent news for both our organisations. Our respective vision and values gave us the opportunity to reach this agreement. This will allow the producers of both organisations to benefit from the advantages of being part of a large national cooperative, and to better serve customers across the country,” declared Dairytown Products chairman, Jim Walker.
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