As the bidding war for Waarrnambool Butter & Cheese continues to intensify, the valuation of Australian agribusiness assets has progressed from fundamental to strategic. Parmalat is the latest to join the group of mostly Asian offshore buyers interested in Harvey Fresh which produces approximately one third of Western Australia’s fresh milk. The sale of Harvey Fresh comes at a time when global dairy entities are competing to acquire Australian dairy assets in order to take advantage of the growing demand for dairy products in Asia. Western Australian investment firm Pendulum Capital states that family-owned Harvey Fresh which generates earnings of between $10 million and $15 million will likely bring in excess of $100 million from its sale. Harvey Fresh began processing juice in 1986 and now runs a juice plant, a dairy factory and a winery. In February 2009 Harvey Fresh acquired juice processor Nugan Quality Foods to also capitalize on the growing export market for fruit and vegetables juices from Australia to Asia.
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