Further consolidation for US dairies
22 September 1999
Further consolidation for US dairies
SUIZA Foods, a dairy products and juices manufacturer, is to buy Southern Foods, in the latest consolidation of the US dairy industry.
The takeover will create a national dairy processor with estimated annual sales of about $6 billion (£3.67bn).
Suiza, already the largest US fluid milk processor, will pool its milk processing operations with those of Southern in a joint venture company.
Suiza will own 66.2%, with the rest belonging to Dairy Farmers of America, which owns Southern along with Pete Schenkel, the group chief executive.
Mr Schenkel will become president of Suizas US liquid milk operations.
The deal is subject to approval from the US Justice Department.
Many US farmers have begun to complain that the large processing groups have compounded their current problems with low commodity prices.
- Financial Times 22/09/99 page 31