The company planning to set up a $750 million dairy aggregation in south-western Victoria and South Australia has confirmed it is yet to purchase any of the farms, which are part of the plan.

Company spokeswoman FTI Consulting strategic communications senior director Sarah Browne said investment would follow investors.

“Aerem is continuing direct discussions with a range of potential investors,” Ms Browne said.  “We are talking directly to farmers and investors and will provide an update once that process is completed.”  Dairy analysts, farmers and a leading investment banker have cast doubts on the plans, which involve putting the 66 farms into six clusters.  In a document produced by KPMG last year, it was claimed Project Matador was expected to produce 350 million litres of fresh milk, each year.  United Dairyfarmers of Victoria president Adam Jenkins said his organisation would welcome a public statement, in which the company let farmers know where it was at with the proposal.

By: Andrew Miller
Source: Adf.online.com.au