Murray Goulburn, Australia’s biggest dairy exporter is looking to seek funding from outside its farmer shareholder base for the first time in 63 years in order to support plans for an expansion that would enable the company to expand into Asian markets. Historically, private equity firms have avoided investing in the sector, however as a way to gain access to dairy markets in Asia, various private equity firms have approached Murray Goulburn including one which has voiced an interest in acquiring the $500 million offer in its entirety according to Fairfax Media. Investment exposure to the Asian dairy sector has been very limited. New Zealand-based Fonterra opened itself to outside investors in 2012 and Bega Cheese listed in 2011 raising $35 million. Murray Goulburn plans to follow Fonterra’s lead and establish a “trading among farmers” scheme allowing farmers to buy and sell shares among themselves instead of through the co-op. These plans however depend upon the outcome of a vote among Murray Goulburn’s farmer shareholders expected to take place in January or February of 2015. Mr. Helou, managing director of Murray Goulburn states that even if the equity raising is not approved, the company will still move forward and fund the expansion plans through other means.
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