Dairy producer pursues acquisition strategy

Dairy producer National Foods Ltd would continue to look for growth through acquisition opportunities, despite its failed attempts with Dairy Farmers Co-operative and Bonlac Foods Ltd, the company said this week, Industry Search reports. National Foods chairman Barry Capp and managing director Max Ould, writing in the company's annual report, said pressure for industry consolidation would continue over the next 12 months.They said the powerful New Zealand industry, which had now consolidated into one major entity, would be a major influence in shaping the Australian dairy industry. "Importantly the strong position we have built over the years places National Foods in a pivotal position in the determination of the future landscape of the Australian industry,"​ Capp and Ould said in a statement."We expect growth to come through further product innovation and we will seek to further diversify our product offering and our geographic spread through acquisition opportunities that are emerging in the region."​ In December 2000, National Foods proposed a friendly merger with Dairy Farmers, which was rejected after six months of negotiations.It also unsuccessfully tried to acquire the consumer products division of Bonlac as part of joint takeover with Murray Goulburn Co-operative in March.