Murray Goulburn (MG) has announced today that Mead Johnson Nutrition (MJN) and MG have mutually agreed that they intend to terminate the March 2016 agreement for an alliance for the supply of nutritional products.
MG said that it remained committed to a B2B nutritionals strategy and MG and MJN will continue to explore new ways to work together.
Interim CEO David Mallinson announced that MG will now review its strategy for its nutritionals investment to ensure MG is maximising value for its suppliers and owners, whilst exercising discipline with MG’s capital.
Approximately 90 per cent of MG’s existing nutritional sales are destined for markets outside of China and MG’s supply agreement with Indonesia’s Kalbe Nutritionals remains in place.
Mallinson noted that “MG remains committed to developing a leading B2B nutritionals business for all export markets and we will continue to assess the best possible way to invest for future growth in this business.”