Dairy Farmers Pty Ltd

Australian company producing dairy products

Dairy Farmers Pty Ltd, originally established in 1900, whose parent company is Australian owned Bega Cheese, is distributed mainly in New South Wales and Queensland in Australia. The core products sold under Dairy Farmers brand are fresh milk (in New South Wales and Queensland only) and UHT "long life" milk (Australia wide), as well as various other dairy snacks. It supplies products to local and international markets such as Eastern Europe, the Middle East and Asia. Kirin Holdings Company Limited of Japan, via its subsidiary National Foods, acquired the company in November 2008, and renamed "National Foods" as "Lion Dairy & Drinks" the following year. On 23 November 2020, a deal was announced that would allow Bega Cheese to buy Lion Dairy & Drinks, and all subsidiaries, including Dairy Farmers.

On 1900 01 15, the Dairy Farmers Co operative Milk Co. Limited was created by 65 stakeholders, most being dairy farmers in the Illawarra region of New South Wales. The aim of the co operative was to market their milk and butter products effectively to city customers. Dairy Farmers was 100% Australian owned by Australian dairy farmers for 107 years, and ultimately had 11 processing facilities. In 2005, Dairy Farmers had the third highest dairy sales in Australia, with Norco Co operative second and National Foods, under its brand "Pura", first. In 2008, Dairy Farmers was acquired by Kirin Holdings (Australia) Pty Ltd, part of the Kirin Group of Japan, and became a 'brand' of National Foods, which Kirin has bought the previous year, ending 108 years as a co operative company. After Kirin Holdings acquired the alcoholic beverage company, Lion Nathan, in 2009, National Foods & Lion Nathan were merged to become "Lion Nathan National Foods". Lion Nathan National Foods became Lion and Lion Dairy & Drinks in 2011. Dairy Farmers' head office was located in Homebush Bay, Sydney until 2008. Lion Dairy & Drinks has its head office is in Melbourne, but LD&D's parent, Lion, has its corporate head office in Sydney. In November 2019, China's Mengniu Dairy announced the purchase of Dairy Farmers’ parent company Lion Dairy & Drinks from Kirin, for approximately (US$407 million). ACCC gave clearance on 20 February 2020, but it still needed FIRB approval. On 25 August 2020, it was announced that Kirin and Mengniu had decided to cancel the sale because rising geopolitical tensions between Australia and China meant it was unlikely approval from Australian regulators would materialise. On 23 November 2020, it was announced that Bega Cheese would purchase Lion Dairy & Drinks, and all subsidiaries including Dairy Farmers for a reported This would make Dairy Farmers Australian owned for the first time since 2008.

Dairy Farmers brand is mainly used for fresh milk (in NSW and Queensland), UHT "long life" milk (Australia wide), "Thick & Creamy" yoghurt, and desserts, creams, custard and buttermilk. Dairy Farmers produced the "Ski" yoghurt range (its main competitor being Yoplait) under licence from brand owner Nestlé, but after the company was acquired by National Foods (Kirin Holdings) in 2008, Fonterra purchased the "Ski" brand (still under licence from Nestlé), with the brand name changing to "Nestlé Ski" in 2012. In 2016 Fonterra divested its yoghurt range, which includes "Nestlé Ski" and "Nestlé Soleil", selling it to Parmalat. As a company (prior to 2009), Dairy Farmers marketed a number of brands: a selection of milk, yogurt, cheese, cream, custard and flavoured milk varieties, sold under the main brand. The company had 11 processing plants in Australia, including at Wetherill Park in Sydney.