Open Country Dairy - Strengthened holdings with Miraka acquisition - Business News Publications in New Zealand

Open Country Dairy has finalised a deal to acquire 100% of Miraka Limited, significantly expanding its footprint across the Central North Island and adding another manufacturing site to its operations.

The acquisition represents a strategic move that enhances Open Country’s geographic positioning and strengthens its milk collection network across the wider region. Founded in 2010, Miraka became operational with its first batch of milk powder exports in August 2011 and has grown its production to around 300 million litres of milk per year.

Open Country CEO Mark de Lautour described the opportunity to purchase Miraka as one that happened quickly and made strong business sense for the company. The acquisition bolsters Open Country’s presence across the Central North Island, complementing its existing operations in the northern Waikato region.

“We have admired the Miraka location and milk supply network for a long period given it sits nicely between our Whanganui and Waikato operations,”
he says.

“While we are still completing our recent Mataura Valley Milk acquisition, we were immediately interested when the opportunity came along to look at Miraka.”

The strategic fit is evident when examining Open Country’s existing operations. The company currently operates four dairy ingredient manufacturing sites around New Zealand located in Horotiu, Waharoa, Whanganui and Awarua. Adding Miraka provides an ideal geographic position that optimises milk collection across the wider region.

“If you look at where our plants are based, we already have a very strong presence in northern Waikato and Taranaki/Manawatu,” says Mark.

“Adding Miraka, which is geographically located in the middle of these two areas, gives us a solid footprint into the southern Waikato.”

The acquisition aligns with Open Country’s strategy of maintaining its 100% New Zealand-owned status while building scale and strengthening customer relationships. Mark says that the company’s ownership structure, strong customer relationships and scale make this a strategic fit for both organisations.

“We really believe that our 100% NZ-owned company culture, strong customer relationships and scale makes this a good, strategic fit.

The shareholders of both Miraka and Open Country believe the deal provides clear benefits for the combined business.”

Mark says the increased scale throughout the Central North Island will allow Open Country to realise important efficiencies across its operations. Over time, Miraka’s geographic position means the combined entity can optimise milk collection across the wider region, improving operational efficiency.

Open Country will also soon add Mataura Valley Milk near Gore once its conditional acquisition agreement with current shareholders is finalised.

Miraka will continue to operate under its current name and brand and all milk supply contracts with Miraka suppliers will remain in place following the acquisition.

“Even though the Miraka team will operate under its own brand, we will work hard to ensure their suppliers and staff feel a part of the wider Open Country team,” says Mark. Miraka Board Chair Bruce Scott says there is a lot to be proud of for Miraka over the past 15 years having grown to become New Zealand’s second largest

Maori-owned exporter: “However, there are significant challenges that come with being a standalone regional processor operating in a global market. Under Open Country Dairy’s ownership, our Miraka whanau will be part of a strong NZ-owned network serving the global dairy market.”

FAST FACTS

Open Country Dairy is 100% New Zealand-owned dairy ingredient manufacturer. It has built its reputation on processing high-quality dairy ingredients for both domestic and international markets, supplying to food manufacturers, nutritional companies and industrial customers worldwide.

Open Country Dairy’s B2B approach allows the company to specialise in producing ingredients that meet specific technical requirements for various applications, from infant formula components to specialty proteins and milk powders.

It is New Zealand’s second largest milk processor and the world’s second largest exporter of whole milk powder.

Open Country Dairy has exported over 95% of its Open Country branded products worldwide since 2004.

Relationships with milk suppliers form the foundation of Open Country’s operations.

Operating through a network of manufacturing sites strategically positioned across New Zealand its operations span from Northland to Southland.