The successful bidder for the Van Dieman’s Land Company, (VDL) OnCard International, would initially adopt a “steady as she goes” approach to the business, according to chairman Rob Woolley.
OnCard was last week accepted as the preferred bidder for VDL, the country’s largest dairy, by owner Taranaki Investment Management Limited. OnCard has told the Australian Securities Exchange it had succeeded in a $250 million capital raising venture, allowing it to proceed with the bid.
“It will be farming as normal and our real attention will be on how do we implement our value added proposition,” Mr Woolley said.
“We will be keeping the pasture improvement strategy in place, the genetic program in place and – although we haven’t make a final decision – we have a broad proposition to add one or two more farms.”
OnCard, which is expected to change its name to TasFoods next month, was expected to take over at VDL on February 1. Mr Woolley said VDL was not looking to change its contract with Fonterra.
“We want to take this milk and use the fact it is high quality, grass fed milk, use the fact it comes from one of the most pristine areas in the world, with the best air and the best grass and turn it into value added products,” he said.
“For too long our value added manufacturing sector has been taken over or disappeared, and frankly, some of our iconic brands have been dumbed down.”
VDL owns 25 farms in far northwest Tasmania and 30,000 cattle, of which 18,000 are milking cows.
Tasmanian Farmers and Graziers Association (TFGA) dairy committee chair Andrew Lester said the planned purchase was a boost for dairy.
“Anything like this is always good and it creates more momentum in the industry, it shows there is confidence the industry is going in the right direction,” Mr Lester said.
Primary Industries Minister Jeremy Rockliff agreed the decision was a vote of confidence in the state’s economy. “The announcement is also exciting for our entire premium food industry,” Mr Rockliff said.
