The Foreign Investment Review Board (FIRB) has approved the majority shareholding of Gippsland milk processor, Burra Foods, by the Inner Mongolia Fuyuan Farming Co Ltd (Fuyuan).
Fuyuan is owned by a number of investors with the largest shareholder being China Mengniu Dairy Co Ltd (Mengniu), which manufactures and distributes dairy products throughout China.
Burra managing director Grant Crothers said Fuyuan’s interest would see the dairy processor gain unparalleled access to the world’s largest, and fastes, growing dairy market.
“We are pleased the FIRB has approved the new shareholder structure of Burra Foods, one that will provide vastly improved access to the world’s fast growing and most dynamic market,” Mr Crothers said.
“We have always focused on higher value milk ingredient products and we see a variety of opportunities for our existing milk powder range in addition to new products.
“International dairy markets are notoriously volatile of which we have seen the worst in recent times and this new structure provides more opportunity for low risk growth up the value chain while gaining access to additional capital.”
Mr Crothers said it would be business as usual for Burra, with the new structure enhancing the future for milk suppliers, providing ongoing employment for dedicated staff and ensuring increased and stable supply to existing customers.
He said the company was now poised to be in an even stronger position to meet their current and future needs, with a solid business model that improved access to markets, technology and capital.
The new shareholder structure took Burra a number of steps closer to having access to more stable less volatile markets.