CALGARY – Talks between two large western dairy co-operatives could lead to marriage, but not for some time, say company officials.
Dairyworld and Dairy Producers Co-operative Limited board members have been discussing a merger since June, but no agreement has been reached, said Dan Wong of Dairyworld.
Earlier rumors suggested the two had already agreed to a merger that would make them the largest dairy co-operative in Canada.
Dairy Producers is based in Saskatchewan and Manitoba with a distribution point in northern Ontario.
Read Also
Feeder market adds New World screwworm risk premium
Feedlots contemplate the probability of Canadian border closing to U.S. feeder cattle if parasite found in United States
“Because of all the changes taking place within the dairy industry all dairies, particularly in Canada, are going to have to re-evaluate their positions … and what the future is going to hold,” said Wendy Kelly of Dairy Producers.
Dairyworld is the result of three dairy co-ops in Alberta and British Columbia joining in 1992. Based in Burnaby, B.C., it is the largest milk processor in Western Canada with holdings in Manitoba and Ontario, as well as a share in a yogurt venture in Quebec.
The most recent figures for Dairyworld show sales in excess of $850 million, said Wong.
