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August 20, 2025 7 mins

Mark de Lautour says the Open Country acquisition of Mataura Valley Milk still means business as usual for suppliers.

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Speaker 1 (00:11):
Kicking off the afternoon here on the Muster with Mark
Delatour here, his chief executive of Open Country. Fair to say,
Open Countries here. Quite a busy week of course, going
into a conditional agreement with the shareholders of a Taro
Valley Milk here at McNabb to acquire the business. Mark,
good afternoon and welcome to the Muster once again.

Speaker 2 (00:31):
Yeah, good afternoon mate. Yeah, your bang on. It's been
an incredibly busy week and you can't forget. At the
same time, we were literally right in the thick of
commissioning our new butter plant up at waharah So, North Island,
South Island. It's been it's been a crazy week.

Speaker 1 (00:49):
Gee, you sound like suckers for punishment all this stuff
on the go at once.

Speaker 2 (00:54):
Yeah, that's right. I mean, it's just the way it's happened.
I guess. You know, this is the the the Matera
Valley Milk deals. You know, it's really exciting for Open Country.
It has taken a long time to put together, and
you know it was it wasn't a quick process and
lots of analysis and lots of planning and so just

(01:14):
because it took a while, I guess it's you know,
come along at the same time that we're commissioning the
butter plant, so not by design, but you know we'll
grab it and you don't, you don't turn away opportunity.

Speaker 1 (01:28):
Well, that's like you were quoted in the press the
other day, a significant capital investment for the company.

Speaker 2 (01:35):
Yeah, it is, it is and and you know, I
think you know it's it's it's more for us around
you know, a commitment to the South. I think we've
mentioned before our intention to invest in the South and
more capital, and you know we've got plans for a
cheese plant and the like, so that it should come

(01:56):
no surprise that that, you know, we're looking to invest
in the South South Otiga SOUTHND region, collect more milk
obviously and really establish usself a bit further down there.
We've already obviously already got a big processing site there
at RUH. But what this does is give us a
bit further each north and some capability that we didn't have.

(02:21):
So you know, we'll probably refocus our investment plan now
that we've got this one done just a little bit further,
but either way where we're still committed to the South.

Speaker 1 (02:34):
So this is going to give open Country, I suppose
a chance to grow the A two milk component down
here in the South.

Speaker 2 (02:41):
Yeah, yeah, I guess it's interesting, right because Open Country
itself wasn't in A two. You know, we haven't been
in the infant formula market. And I'll be clear for
the listeners, Open Country isn't going into infant food products.
But we do have a supply agreement with the A

(03:02):
to Milk Company for product combination of powder products that
require the A A two A one protein free milk.
So really, whether we grow that milk collect or not,
it will be determined on the demand that the AT
and Milk Company have on those products. And so you know,
right now, definitely we will maintain none of those A

(03:27):
two contracts that come with Mataravelli. And you know, we'll
be talking to the Mataravilly farmers as soon as we
can on that, noting the deals not completely. It's still
a conditional agreement, so needs to needs to close and
then and then we'll talk to the farmers. But really,
is that A two demand grows, we you know, we'll
we'll look for more supply. If it doesn't grow, then

(03:48):
we'll probably be pretty happy with the A two component
that's already there.

Speaker 1 (03:53):
So from an Open Country's perspective, as a business is
usual for MBM supplies.

Speaker 2 (03:58):
Yeah, it is. Like I said, it's conditional at the moment,
and we have no concerns that it's not going to
complete the dealer. It obviously wouldn't have been announced if
there was too much concern there. But absolutely business as
usual and even you know, even after we take it,
like I said, the milk supply contracts will be honored.
We didn't buy the site to close it. We didn't

(04:20):
buy the site to devet the milk. We bought this
bought the site because of its processing capabilities. Is a
very very slickt site. What we will do is look
to maximize the capability of that site. So you know,
if we're not going to fill it with A two milk,
you know, because of the A one protein free milk,
because of A two's demand, and then we'll fill it

(04:41):
with non non A two milk.

Speaker 1 (04:43):
Open Country looking at this though, Mark, I suppose basically
looking forward, you just solidifying your position down here in
the South.

Speaker 2 (04:50):
Yeah, exactly. I mean the milk processing is about scale.
I mean, it's it's a contrary to popular belief. It's
it's not a high margin business processing milk, so you've
got to have scale, and so I think it's a
it's a difficult, difficult place if you're a single dryer

(05:11):
site business. So you know, we often move orders around
from site to site and depending on capabilities and seasonal
milk flows. When you've got multiple sites, you can you
can move things around and got options which in a
single site doesn't have. So I think for the for
the Matara Valley facility and staff, it's a it's a

(05:33):
great move because you know they're part of a larger organization,
larger group, and we can look forward with with a
lot of excitement.

Speaker 1 (05:41):
Now yourself and open country chair Lurry, Margaret, You're going
to be down at m VM next Tuesday, is that right?

Speaker 2 (05:47):
Yeah, that's the plan. That's the plan. That's we're we've
we've we've got the flights book, so we'll be heading
down there and having a catch up and meeting, meeting
some of the staff and you know, again the deal
isn't necessarily finalized, but so I don't be had to
say too much, but it'll be good to meet everyone
and get make everyone feel comfortable and you know, hopefully

(06:08):
meet a few of the farmers there as well, and
I think the team are trying to put something together
at the Croydon Lodge on the same day and just
have a chance to talk to the farmers and in
the lay any fairs.

Speaker 1 (06:19):
Just finally, Mark Fontira coming out this morning lifting their
farmgate milk price to ten dollars fifteen dere I ask
Open Country, what's happening?

Speaker 2 (06:29):
Yeah, I think, I mean that's always a positive sign,
isn't it. I mean, I think the reality is if
they see the world more negatively than we, you know,
we kind of get nervous. So we're pretty positive with
our forecast for the season. I think we're starting off
at about a ten to thirty mid point for the
first period that we that we pay, so you know,

(06:52):
we're seeing the season positive as well. You know, demand's good,
cross cheese across milk particles. We've got better this year,
which is long awaited. But so we're feeling pretty positive
about the year as well. So, you know, good to
see they're seeing the same thing we are.

Speaker 1 (07:10):
Marc Della Tour, Chief executive of Open Country, Always appreciate
your time on the muster.

Speaker 2 (07:15):
No problem, mate, Thanks very much for having.

Speaker 1 (07:20):
Marc Delatour of Open Country and what has been a
pretty big week for the business. It's fair to say
Nicole horror from Environment South and is up next. This
is the Muster
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