MURRAY Goulburn's failed takeover of Warrnambool Cheese and Butter is a win for competition in the dairy industry.
This is the view held by many dairy farmers contacted by The Weekly Times since the co-operative revealed to its suppliers last week that it was behind one of the mystery pre-Christmas bids to takeover the Allansford-based company.
MG's bid for WCB was believed to be about $4 a share, valuing the business at about $160 million.
The WCB board informed the Australian Stock Exchange on December 23 of two takeover approaches, however, it advised shareholders to take no action.
Cashmore WCB supplier Brian Antony opposed the merger and said he did not want to supply MG.
"It is something we definitely don't want. It would reduce competition in the industry ... and that's bad for farmers," he said.
South Australian WCB Mount Schank supplier Peter Telford also didn't like the idea of less competition.
However, MG chairman Grant Davies said a stronger co-operative would return benefits to farmers.
"In MG's case, every dollar profit MG makes it returns to farmers," he said.
"(They) shouldn't be concerned about a lack of competition."
Mr Davies said MG was aware of the importance of WCB and its brands in the local community and if the buy-out were successful MG would build on this success.
MG was currently reviewing its position on the takeover.
A Cooriemungle WCB supplier, who did not wish to be named, said a takeover of the company was inevitable and was relieved that an Australian business had expressed interest in purchasing it.
Byron Gilmore, a South Australian Murray Goulburn supplier at Eight Mile Creek said there were potential "economies of scale" savings in manufacturing and freight that would result from merging the two companies.
WCB chief executive officer John McLean said MG's announcement did not contain anything new.
"It's an opportunistic offer. We appreciate that MG would like to secure control of milk in the Western District, it's only natural," he said.
"(We have had) overwhelming support from suppliers to stay on our own, to do the best we can going forward, that's overwhelming in capital letters."
In a statement to the ASX, WCB said the board "sees no reason to further engage with MG, as the terms and conditions of its indicative proposal cannot be satisfied."
