Burra Foods has announced it has entered into an agreement to purchase the Gippsland assets of United Dairy Power and Five Star Foods Pty Ltd and importantly underwrite the payment terms to current dairy farmer suppliers.
United Dairy Power’s milk depot in Poowong is a key part of the acquisition and is an important piece of infrastructure to support the intake of the milk collected from across Gippsland.
Burra Foods chief executive Grant Crothers said that the acquisition was an important growth step in the company’s 25-year history and would enhance Burra Food’s long-term future and its ability to meet the continued demand for high quality dairy ingredients from its primarily Asian customer base.
“We have built the business through organic growth so acquisition is new for us but the Poowong depot is a natural fit and we hold farmers who supply UDP in high regard," Mr Crothers said.
“The acquisition will strengthen our market position by providing greater assurance for a secure and stable milk supply and that will allow us to confidently grow and access new markets,” he said.
“For suppliers of United Dairy Power, it will provide an assured future and premium for their milk, which we believe will be welcomed after a sustained period of uncertainty.”
Mr Crothers said that the strategic acquisition allowed Burra Foods to grow in a planned and sustained manner and strengthened its current operation and milk supply partnerships.
“We are known for our close working partnerships and supporting our milk partners and this will remain a priority for us as we incorporate the UPD assets into our current operations,” he said.
