NSW dairy farmers have welcomed the $910 million National Foods acquisition of Dairy Farmers, which was agreed to yesterday by 96.3 per cent of Dairy Farmers shareholders.
NSW Farmers' Association dairy committee chairman Adrian Drury said the sale would give dairy farmers a secure outlet for the milk they produce.
"Once the deal has been finalised, National Foods will have a greater market share and improved bargaining power with retailers," Mr Drury said.
"This will put National Foods in a better position to secure improved prices with retailers, which we hope will be passed onto producers," Mr Drury said.
The National Foods' proposal to purchase Dairy Farmers has already been unanimously recommended by the boards of both companies. A Federal Court hearing will take place on November 18 to seek approval of the scheme. If approved, the scheme will be implemented on November 26.
National Foods was purchased by Japanese brewer, Kirin, last year.
