ACCC Probes Bega’s Bid for Fonterra Oceania
Australia’s competition authority, the Australian Competition and Consumer Commission (ACCC), has officially opened an informal merger review into Bega Cheese’s proposed acquisition of Fonterra’s Oceania consumer, food‑service, and ingredient operations. The review—launched on 1 August—follows a growing consolidation trend in the Australian dairy sector and marks a strategic pivot by Fonterra to streamline its global footprint.
The deal includes major brands and facilities: Fonterra’s Oceania division sources milk from approximately 650 dairy farms, employs 1,500 staff, and operates eight processing plants across Victoria and Tasmania. Bega, which processes over 1.3 billion litres annually from more than 600 farmers under 19 sites, has partnered with FrieslandCampina to strengthen its bid.
The ACCC’s public consultation will examine several competition dimensions:
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Impact on raw milk procurement—whether Bega-Fonterra integration could stiffen supplier bargaining or depress farmgate prices.
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Potential reduction in competition among milk processors and retail and food service suppliers.
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Effects on wholesale dairy products, including milk, cheese, butter, creams, and ingredients. R
Stakeholder submissions are invited through 15 August (AEST), with a provisional decision or Statement of Issues expected by 25 September.
This follows an earlier ACCC determination on 10 July, where it found that Lactalis’s bid for Fonterra’s consumer and ingredients businesses would not substantially lessen competition—a decision driven by differing supply and product mix overlaps in Victoria and Tasmania.
Industry Insight:
This regulatory intervention underscores the sensitivity of raw‐milk procurement dynamics and brand consolidation in a relatively concentrated market—outcomes which directly affect farmgate pricing power, processors’ bargaining leverage, and investor clarity around supply chain control.
Source : Dairynews7x7 Aug 5th 2025- (Dairynews Australia and other sources)