Dairy Farmers

Dairy Farmers Pty Ltd, originally established in 1900, whose parent company is Japanese-owned Lion Dairy & Drinks, and is distributed mainly New South Wales & Queensland in Australia. The core products sold under that Dairy Farmers brand are fresh milk (in NSW and Queensland only) and UHT "long-life" milk (Australia wide), as well as various other dairy snacks. It supplies products to local and international markets such as Eastern Europe, the Middle East and Asia.

Dairy Farmers
IndustryFood
Founded15 January 1900 (1900-01-15)
FounderDairy Farmers Co-operative Milk Company, Illawarra, New South Wales, Australia
HeadquartersDocklands, Melbourne, Victoria, Australia
Area served
Australia
ProductsDairy
OwnerMengniu Dairy
ParentLD&D Milk Pty Ltd
(Lion Dairy & Drinks)
Websitewww.dairyfarmers.com.au

LD&D's factories (which carry the "Dairy Farmers" brand) are located at:

  • NSW: 2257 Castlereagh Rd, Penrith, Sydney, New South Wales, Australia
  • QLD: 64-72 Magnesium Dve, Crestmead, Queensland, Australia

These sites are also the locations printed on the back of all fresh milk bottles in NSW and QLD respectively.

Kirin Holdings Company Limited of Japan, via its subsidiary National Foods, acquired the company in November 2008, and renamed "National Foods" as "Lion Dairy & Drinks" the following year. China's Mengniu Dairy expressed an interest to purchase Lion Dairy & Drinks for $600 million, in 2019. Whilst the ACCC gave clearance in Feb 20, the sale it yet to receive FIRB approval.

History

On 15 January 1900 (1900-01-15), the Dairy Farmers Co-operative Milk Co. Limited was created by 65 stakeholders, most being dairy farmers in the Illawarra region of New South Wales. The aim of the co-operative was to market their milk and butter products effectively to city customers.[1] Dairy Farmers was 100% Australian owned by Australian dairy farmers for 107 years, and ultimately had 11 processing facilities. In 2005, Dairy Farmers had the third-highest dairy sales in Australia, with Norco Co-operative second and National Foods, under its brand "Pura", first.

In 2008, Dairy Farmers was acquired by Kirin Holdings (Australia) Pty Ltd, part of the Kirin Group of Japan,[2][3] and became a 'brand' of National Foods, which Kirin has bought the previous year, ending 108 years as a co-operative company. After Kirin Holdings acquired the alcoholic beverage company, Lion Nathan, in 2009, National Foods & Lion Nathan were merged to become "Lion Nathan National Foods". Lion Nathan National Foods became Lion and Lion Dairy & Drinks in 2011.

Dairy Farmers' head office was located in Homebush Bay, Sydney until 2008. Lion Dairy & Drinks has its head office is in Melbourne, but LD&D's parent, Lion, has its corporate head office in Sydney.

In November 2019, China’s Mengniu Dairy purchased Dairy Farmers’ parent company Lion Dairy & Drinks from Kirin, for approximately AUD $600 million (USD $407 million).[4]

Brands

Dairy Farmers brand is mainly used for fresh milk (in NSW and Queensland), UHT "long-life" milk (Australia wide), "Thick & Creamy" yoghurt, and desserts, creams, custard and buttermilk.

Dairy Farmers produced the "Ski" yoghurt range (its main competitor being Yoplait) under licence from brand owner Nestlé, but after the company was acquired by National Foods (Kirin Holdings) in 2008, Fonterra purchased the "Ski" brand (still under licence from Nestlé), with the brand name changing to "Nestlé Ski" in 2012. In 2016 Fonterra divested its yoghurt range, which includes "Nestlé Ski" and "Nestlé Soleil", selling it to Parmalat.

As a company (prior to 2009), Dairy Farmers marketed a number of brands: a selection of milk, yogurt, cheese, cream, custard and flavoured milk varieties, sold under the main brand. The company had 11 processing plants in Australia, including at Wetherill Park in Sydney.

Company milestones

  • 1900 – Company established (The Dairy Farmers Co-operative Milk Co. Limited)
  • 1935 – Established first bottling plant in Sydney
  • Mid-1960s – Began producing cottage cheese and flavored yogurts
  • 1977 – Invested in Ultra High Temperature (UHT) production
  • 1989 – Acquisitions and mergers saw the formation of, Australian Co-operative Foods (ACF), to be known as Dairy Farmers
  • 1993 – Acquired Dairy Vale (SA), Midland Milk (Vic), Malanda Co-operative (FNQ), and Queensco-Unity Dairyfoods Co-operative (SEQ)
  • 1997 – Acquired the COON, Mil Lel and Fred Walker cheese brands, and the licence for the Cracker Barrel brand. Merged with Malanda Dairy Foods and integrated the Dairy Vale business
  • 2005 – Restructured and refocused the company. Separated the FMCG business from the milk supply co-operative
  • 2008 – Acquired by Japanese-owned food and beverage company Kirin Holdings. Dairy Farmers' became a brand of National Foods.
  • 2009 – National Foods became Lion Nathan National Foods, after Kirin Co. Ltd acquired 100% of Lion.
  • 2011 – Lion Nathan National Foods separated into two new divisions, "Lion" and "Lion Dairy & Drinks" (LD&D Milk Pty Ltd and LD&D Foods Pty Ltd), with head offices in Sydney & Melbourne respectively.
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References

  1. "Our History". Student pack. Australian Co-operative Foods Limited. Archived from the original on 30 August 2007. Retrieved 2 September 2007.
  2. "Japanese firm readies bid for Dairy Farmers". Australian Broadcasting Corporation. Retrieved 26 August 2008.
  3. "National Foods to acquire Dairy Farmers for $910 million" (Press release). Dairy Farmers Limited. 25 August 2008. Archived from the original on 28 August 2008. Retrieved 28 September 2008.
  4. "Mengniu buys Lion Dairy and Drinks". dairyreporter.com. Retrieved 3 January 2020.
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