Bega eases supplier concerns after Warrnambool bid

After last week making a $319 million bid to take over Warrnambool Cheese and Butter, Bega has vowed not to make any immediate changes to how it pays suppliers if its offer is accepted.

According to weeklytimesnow, Bega Cheese executive chairman, Barry Irvin, said the company wouldn't look to change anything in the initial stages of a takeover.

"We absolutely recognise that we can't just come in and change the milk price, disrupt the whole traditional pay system," he said.

Bega Cheese's milk price is weighted towards Spring production and many Warrnambool Cheese and Butter suppliers are geared for late-season incentives.

If Bega is successful, the takeover would result in a business operating across seven sites, with about 1,000 suppliers and 2,000 employees, producing 350,000t of dairy products and generating $1.5 billion in revenue annually.

Weeklytimesnow reports Bega, which already owns 18 percent of Warrnambool, would enjoy market capitalisation of about $650 million.


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